easy · Corporate Credit Analysis

If a borrower is 'Covenant-Lite,' it generally means the lender has no right to intervene until what happens?

1. A payment is missed or the company attempts an action that violates an incurrence test.
2. The company's EBITDA falls by more than 5% year-over-year.
3. The company's auditor issues a standard 'unqualified' opinion.
4. The stock market overall enters a 'bear market' phase.

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