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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Summary: Mumbai (Maharashtra) [India], Aug 28 (ANI): Global rating agency S&P has placed IDBI Bank on credit watch, citing uncertainty over its ability to meet capital requirements over the next few months.
The rating agency has lowered its long-term rating on the State of Qatar to AA- from AA and placed the rating on credit watch with negative implications.
S&P says it will update the credit watch status on March 13.
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.
They also announce Credit Watch (S&P), Rating Watch (Fitch) or Watch List (Moody' s).
(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.
We analyze credit watch and rating actions to better understand the role of credit watches in the credit rating process.
The "negative" credit watch mirrors the significant underperformance of Noor Takaful General and the resultant material deterioration in its capital strength and liquidity, S&P said.
All ratings of the company were placed on "negative" credit watch, meaning they will be either downgraded or affirmed at the end of a review.
MANAMA: International ratings agency Standard & Poor's (S&P) has placed three Bahrain insurance companies on a credit watch with negative implications.
Three of, United Arab Emirates (UAE) capital, Abu Dhabi's government related entities have been taken off Standard and Poor's (S & P's) credit watch
Standard & Poor's Ratings Service said Monday it has affirmed its B plus long-term corporate credit rating on Japan Airlines Corp., removing it from ''Credit Watch'' for possible downgrading.
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