Standard & Poor's Bank Loan & Recovery Ratings are issue-specific ratings that go beyond
the overall corporate creditworthiness of the borrower to capture the impact of covenants,
collateral and other repayment protection -- provided specifically to holders of the senior
bank debt. Bank loan ratings may be higher than the borrower's corporate credit ratings,
depending on the extent of the extra protection provided to bank lenders.
Benefits
Helps substantiate the extra protection that senior lenders may have in relation to
bondholders or other creditors
Expands a loan's initial investor base and improves its secondary market liquidity
Increases the comfort level of investors (especially institutional investors), specialized
loan funds and other buyers who may not be traditional lenders or have large internal credit staffs.
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