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