Notch Downgrade definition
Notch Downgrade means a reduction in a long-term rating evidenced by the removal or substitution of a modifier or numerical qualifier. For example, a downgrade from A- to BBB+ is a Notch Downgrade, as is a downgrade from BBB+ to BBB. Similarly, a downgrade from A3 to Baa1 or from Baa1 to Baa2 is a Notch Downgrade.
Examples of Notch Downgrade in a sentence
For every Notch Downgrade of the Underlying Rating assigned to the Bonds by any one or more of S&P, Moody’s or Fitch, below “A” with respect to S&P, “A2” with respect to Moody’s, or “A” with respect to Fitch, the Commitment Fee shall be increased by an additional five basis points (0.05%) per annum.