Uptiering Safeguard prevents most leveraged loans: Moody’s



June 24, 2021 2:03 PM

Only about one-third of new leveraged loans issued by junk-rated nonfinancial companies in April and May contained any kind of “bump” protection where first-collateral lenders could amend the loan to take precedence over other lenders … Moody’s Investors Service report.

  • At the end of March, the Credit Syndication and Trading Association released new documentary fixes to improve the rating, which Moody’s expects to be widely disseminated in the market. Instead, only 33% of 45 new loans reviewed by Moody’s included any safeguards.
    • Only two of them had full recommended documentation changes.
    • The rest provided an option for the recommended protection, including …


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