easy · Debt Capital Markets
In a standard corporate liquidity assessment, how is an undrawn revolving credit facility (RCF) typically treated?
- It is subtracted from the liquidity pool as a potential future liability.
- It is ignored because it does not represent actual cash currently on the balance sheet.
- It is only included if the company has already breached a maintenance covenant.
- It is added to cash on hand to determine total available liquidity.
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