hard · Corporate Credit Analysis
A 'Covenant-Lite' loan is most accurately described by which of the following statements?
- The loan lacks maintenance financial covenants but still contains incurrence-based covenants.
- The loan has no covenants of any kind, allowing the borrower absolute freedom.
- The loan only has covenants that are tested once a year during the audit process.
- The loan is unsecured, meaning covenants are not required by the lenders.
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