easy · Debt Capital Markets credit-ratings-risk
In a standard corporate liquidity assessment, how is an undrawn revolving credit facility (RCF) typically treated?
- It is deducted from the liquidity pool as a drawdown liability.
- It is excluded, since it is not actual cash on the balance sheet today.
- It counts only once the borrower has tripped a maintenance financial covenant.
- It is added to cash on hand to determine total available liquidity.
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