Credit rating meaning

For further details on the documents outlined below, please refer to Practice Note: Issuing debt securities—key documentation. Appointment of the arranger The issuer (Issuer) designates an arranger (Arranger) to set up the programme. The Arranger may additionally serve as a dealer or manager for later note issues under the programme. Responsibility —Issuer and Arranger. Appointment of the dealers The dealer(s) (Dealers) will enter into a dealer agreement with the Issuer and the Arranger. For a syndicated issue, the Dealers and the Issuer may also sign a subscription agreement. New dealers may be added to the programme after launch via a dealer accession letter. Responsibility —Dealers, Arranger and the Issuer. Appointment of the agents The Issuer will appoint agents to act on its behalf for the programme. These may include a fiscal agent (Fiscal Agent) or a trustee (appointed by the Issuer to represent the interests of the noteholders),...

In this issue: UK, EU and international regulators and bodies Authorisation, approval and supervision Prudential requirements Financial crime and sanctions Consumer protection Complaints, compensation and claims management Investigations, enforcement and discipline Regulation of capital markets Dispute resolution for financial services lawyers Regulation of derivatives Sustainable finance and ESG Banks and mutuals UK MiFID II EU MiFID II Consumer credit Regulation of insurance Payment services and systems Fintech and cryptoassets LexTalk®Financial Services: a Lexis®Nexis community Daily and weekly news alerts New and updated content Dates for your diary UK, EU and international regulators and bodies FCA publishes Handbook Notice No 135 The Financial Conduct Authority (FCA) has issued Handbook Notice No 134, outlining amendments to the FCA Handbook and related materials approved by the FCA board on 27 November 2025. See: LNB News 28/11/2025 48. ESMA sets out planned consultations for...

In this issue: Prudential requirements Financial crime and sanctions Complaints, compensation and claims management Investigations, enforcement and discipline Regulation of capital markets Sustainable finance and ESG Banks and mutuals Investment funds and asset management UK MiFID II Consumer credit, mortgage and home finance Regulation of insurance FSMA regulated pensions activity Payment services and systems Financial Services Enforcement Database Daily and weekly news alerts Intraday news alerts New and updated content Dates for your diary Prudential requirements COREPER asked to endorse agreement on CCP concentration risk treatment After the European Parliament adopted, in April 2024, a proposal for a directive of the Parliament and the Council to amend Directive 2009/65/EC (UCITS), Directive 2013/36/EU (CRD IV) and the Investment Firms Directive (EU) 2019/2034 (IFD), the Council of the EU’s General Secretariat released an ‘I/A’ Item Note inviting the Council’s Permanent Representatives Committee (COREPER) to confirm its agreement...

In this issue: Commercial Data protection and cybersecurity Financial services Energy Environment IP Life sciences TMT Daily and weekly news alerts Trackers New and updated content Commercial Viagogo commits to better inform consumers of the resale of tickets The European Commission has confirmed that Viagogo, an online marketplace for second-hand event tickets, has pledged to stop pressuring consumers with excessive countdown prompts and to provide clearer details about ticket resale conditions in line with EU consumer protection rules. This follows numerous complaints submitted to the Commission and national consumer authorities. Viagogo will roll out website changes by the end of August 2024, including clearer ticket ranking in search results, fewer countdown notices on the site, and early disclosure on the ticket selection page of whether the ticket seller is a trader or another consumer. Viagogo has also committed, by the end of August 2024, to make changes and clarifications to several clauses...

This Practice Note looks at Term Loan B (TLB) facilities, which often feature as a senior tranche within syndicated loans in leveraged financings. TLBs are long-established in the US market and are increasingly seen in the European lending market for institutional investors. It examines the structure of a typical TLB and how it diverges from traditional European leveraged loans, before setting out the key features. This Practice Note assumes some understanding of leveraged finance. For introductory information, see: Introductory guide to acquisition finance. For explanations of common terms, see Practice Note: Glossary of acquisition finance terms and jargon. What is a Term Loan B? In lending markets, ‘Term Loan B’ or ‘TLB’ (short for Term Loan Bullet) describes a tranche of senior secured credit facilities made available to a borrower and intended to be syndicated in the institutional loan market. They are usually floating-rate term facilities with an actual or implied non-investment grade rating, a five to seven year maturity and either nominal amortisation of 1% per annum...

What are investment-grade, high yield and crossover bonds? Investment grade (IG) bonds are debt instruments that hold an IG credit rating: BBB and above on the S&P and Fitch scales, and Baa3 and above on the Moody’s scale (for further detail on credit ratings, see Practice Note: Credit ratings). IG issuers are usually sizeable blue‑chip corporates—well‑known, well‑established and well‑capitalised—and are often companies with shares listed on a major stock exchange. Aside from sovereign bonds of developed markets, IG securities are widely regarded as among the safest income‑generating investments. As a consequence of this perceived safety, IG bonds tend to offer lower yields than high yield (HY) bonds. Many institutional investors and pension schemes operate policies and mandates that constrain their bond holdings to assets with, on average, lower default risk, such as IG instruments or government obligations. In broad terms, HY bonds encompass all bonds from issuers rated below IG. HY issuers may include public companies that lack (or previously had but later lost) an IG rating, private companies...

CASE HUB ARCHIVED This archived case hub captures the position as at the judgment of 26 June 2014 and it is no longer being maintained at present. Case facts ARCHIVE—26/06/2014 Outline An appeal to the General Court seeks the annulment of the decision of the Commission’s accounting officer dated 8 October 2010 concerning payment by instalments of the fine imposed upon the applicants by the Commission decision of 20 July 2010, adopted within a 'hybrid' settlement procedure, in relation to a cartel spanning over three decades in the European animal feed phosphates market ('Animal feed phosphates cartel'). The challenge specifically targets the condition requiring Quimitécnica to furnish a bank guarantee issued by a bank holding a long‑term 'AA' credit rating from one of three named credit rating agencies. The case turns chiefly on inability to pay and the arrangements for the payment of that fine. Parties Applicants: Quimitécnica.com—Comércio e Indústria Química SA (Quimitécnica) José de Mello—Sociedade Gestora de Participações Sociais SA...

Article 18(1) of the UK Market Abuse Regulation (Assimilated Regulation (EU) 596/2014 (UK Market Abuse Regulation)) An issuer, or any person acting for an issuer or on the issuer’s account, is obliged to compile a list of all individuals who have access to inside information and who work for them under an employment contract, or who otherwise carry out tasks that provide access to such information, for example advisers, accountants, or credit rating agencies...

Article 18(1) of the UK Market Abuse Regulation (Assimilated Regulation (EU) 596/2014 (UK Market Abuse Regulation)) Article 18(1) requires that an issuer, or any person operating on the issuer’s behalf or account, prepares a list of every individual who has access to inside information and is working for them under a contract of employment, or is otherwise carrying out tasks that provide such access, eg advisers, accountants or credit rating agencies...

Article 18(1) of the UK Market Abuse Regulation, Assimilated Regulation (EU) 596/2014 (UK Market Abuse Regulation), states that an issuer, or any person acting for or on the account of an issuer, must compile a record of every individual with access to inside information who works for them under an employment contract, or who otherwise carries out tasks that thereby give them such access, for example advisers, accountants or credit rating agencies. The Financial Services Act 2021 revised Article 18(1) to make clear that both issuers, and any person acting for them or on their account, are each required to keep and maintain insider lists. This amendment came into force on 29 June 2021...