Ratio Covenants

J. A. Donaldson and T. H. Donaldson
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J. A. Donaldson: Imperial Chemical Industries
T. H. Donaldson: Morgan Guaranty Trust Company of New York

Chapter 7 in The Medium-Term Loan Market, 1982, pp 108-126 from Palgrave Macmillan

Abstract: Abstract This chapter discusses ratio covenants designed to protect the bank’s position should the borrower’s credit-worthiness begin to deteriorate. Ratio covenants are among the most contentious aspects of a loan agreement and many companies resist them fiercely, while many banks argue that they are beneficial to the borrower as well as to the banks.

Keywords: Cash Flow; Balance Sheet; Ratio Covenant; Capital Expenditure; Secured Debt (search for similar items in EconPapers)
Date: 1982
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-06242-3_7

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DOI: 10.1007/978-1-349-06242-3_7

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