medium · Debt Capital Markets credit-ratings-risk
In a Debt Incurrence Ratio test, how is the 'numerator' (Debt) typically handled for a Revolving Credit Facility?
- Only the portion of the facility that is secured is counted.
- The total commitment (drawn plus undrawn) is counted as debt.
- The average daily balance over the quarter is used.
- Only the currently drawn amount is counted as debt.
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