Corporate Credit Analysis Glossary — Key Terms & Definitions
- AAA / Aaa Rating
- ABL (Asset-Based Lending)
- Absolute Priority Rule
- Adequate Protection
- Advance Rate
- Affirmative Covenant
- Altman Z-Score
- Amortizing Loan
- Anchor Rating
- Asset Swap Spread (ASW)
- Automatic Stay
- Basel Framework
- Basis (CDS-Bond)
- BB / Ba Rating
- BBB / Baa Rating
- Bond Indenture (Trust Indenture)
- Bridge Loan
- Builder Basket
- Bullet Maturity
- Capital Structure
- Cash Conversion Cycle (CCC)
- CCC / Caa Rating
- CFO (Cash Flow from Operations)
- Change of Control
- Chapter 7
- Chapter 11
- CLO (Collateralized Loan Obligation)
- Collateral Coverage Ratio
- Commercial Paper
- COMI (Centre of Main Interests)
- Convertible Bond
- Covenant-Lite
- Cramdown
- CreditMetrics
- CreditWatch
- Cross-Default
- Cumulative Default Rate
- Daily Sales Outstanding (DSO)
- Days Inventory Outstanding (DIO)
- Days Payables Outstanding (DPO)
- DCF (Discretionary Cash Flow)
- Debt / EBITDA
- Debtor in Possession
- Default Rating (D)
- DIP Financing
- Distance to Default
- Distressed Exchange
- Distressed Multiple
- DSCR (Debt Service Coverage Ratio)
- EAD (Exposure at Default)
- Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)
- EL (Expected Loss)
- Equity Cure
- ESG Credit Risk
- Event of Default
- Expected Default Frequency (EDF)
- Face Value
- Fallen Angel
- FCCR (Fixed Charge Coverage Ratio)
- FCF (Free Cash Flow)
- FFO (Funds From Operations)
- FOCF (Free Operating Cash Flow)
- Fulcrum Security
- Going Concern
- G-Spread
- Hazard Rate
- High Yield
- HoldCo / OpCo
- IBR (Internal Ratings-Based)
- ICR (Issuer Credit Rating)
- Incurrence Covenant
- Indenture
- Intercreditor Agreement
- Interest Coverage Ratio
- Investment Grade
- I-Spread
- Leveraged Loan
- LGD (Loss Given Default)
- Liquidation Value
- MAC Clause (Material Adverse Change)
- Maintenance Covenant
- Mandatory Prepayment
- Merton Model
- Mezzanine Debt
- MOIC (Multiple on Invested Capital)
- Most Favored Nation (MFN)
- Negative Covenant
- Net Debt / Net Leverage
- Notching
- OAS (Option-Adjusted Spread)
- Pari Passu
- PD (Probability of Default)
- PIK (Payment-in-Kind)
- Pre-Pack
- Priority of Claims
- Rating Outlook
- Recovery Rate
- Recovery Waterfall
- Restricted Payments
- Restructuring Plan
- Revolving Credit Facility (Revolver)
- Rising Star
- Risk-Weighted Assets (RWA)
- Seasoning
- Senior Secured
- Senior Unsecured
- Single-B
- Sovereign Ceiling
- Sponsor / Sponsorship
- Spread (Credit)
- Springing Maturity
- Structural Subordination
- Subordinated
- Term Loan A / B
- Through the Cycle
- Transfer and Convertibility (T&C) Risk
- Transition Matrix
- Trustee
- UL (Unexpected Loss)
- Unitranche
- Unrestricted Subsidiary
- Dutch Court-Approved Restructuring Plan (WHOA)
- Working Capital
- Workout
- Zero-Coupon Bond
- Z-Spread
- Corporate Credit Analysis
- Credit Metrics & Debt Schedule Modeling
- Distressed Debt & Restructuring
- Business Risk
- Financial Statement Analysis & Cash Flow Dynamics
- Credit Agreements & Covenants
- Ratings, Syndication & Market Dynamics
- Current Ratio
- Receivables Cash Flow