credit watch

Credit watch

A warning by a bond rating firm indicating that a company's credit rating may change after the current review is concluded.

Credit Watch

Notice from a credit rating agency to a bond issuer that a negative factor has arisen in the agency's review of the issuer's credit rating. If the issuer does not take steps to explain or alleviate the factor, the credit watch may be the first step toward a reduction in the issuer's rating. For example, a credit rating agency may discover a dramatic drop in an issuer's liquidity ratio, which increases the likelihood of default on a debt. It would then send a credit watch to the issuer.

credit watch

The reevaluation of the credit quality of a firm's debt obligations by a rating agency. Being the object of a credit watch generally indicates the credit quality of a firm's debt has deteriorated and may be downgraded.
References in periodicals archive ?
S&P says it will update the credit watch status on March 13.
The agency said that it had revised its assessment of the bank's capital to 'moderate' from 'adequate' and placed the rating on a negative outlook from Credit Watch negative.
At the launch of the SME Credit Watch Survey, boss Mark Fielding said: "The fact that less than 3% of businesses can charge interest on overdue payments clearly shows the failure of the legislation to assist SMEs in the unequal struggle with larger customers.
Standard & Poor's placed the insurer on credit watch negative, pending an examination of its sovereign exposure, the ratings agency said last month.
They also announce Credit Watch (S&P), Rating Watch (Fitch) or Watch List (Moody' s).
Fitch Ratings placed Tamweel on credit watch positive on April 2 and affirmed DIB at A, its sixth-highest investment grade.
SeeNews) - Nov 12, 2012 - Standard & Poor's (S&P) said Friday it revised up by two notches the long-term counterparty credit and financial strength ratings on Italian insurer Fondiaria-SAI SpA (BIT:FSA) to BB from B+ keeping the credit watch with "positive" implications.
Dar Al Arkan (DAAR) has announced that Standard & Poor's has removed the negative credit watch from DAAR's rating, and affirmed DAAR's long-term corporate rating at B+, with a stable outlook
Standard & Poor's rating agency announced it will keep the United Bulgarian Bank, majority-owned by the National Bank of Greece, on its credit watch negative.
We analyze credit watch and rating actions to better understand the role of credit watches in the credit rating process.
In afternoon trading, however, some of the early gains were erased on reports that Standard & Poor's Ratings Services could put several blue-chip eurozone nations such as Germany and France on its credit watch list for possible downgrading, the analysts said.
Ratings agency Standard and Poor's (S&P) has put all but two of the seventeen eurozone nations on a credit watch.
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