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