medium · Corporate Credit Analysis ratings

A leveraged loan is flexed from a 1% soft call (101) for 6 months to a 1% soft call for 12 months.

Economically, how should a credit analyst view this change?

  1. As a reduction in the borrower's refinancing flexibility
  2. As an improvement in the lender's recovery rating
  3. As an increase in the cost of debt for the borrower
  4. As a non-material documentation change with no economic impact

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