Credit repair (credit repair; [financial] rating betterment)

All measures taken by a debtor to improve its lowered creditworthiness (practice of improving or rehabilitating one’s financial reputation, the creditworthiness) – In the context of securitizations, defined for regulatory purposes as a contractual agreement by which – the credit quality of a securitization position – is adjusted upward compared with a position without such an agreement. – In addition to the irrevocable loan commitments to special purpose entities much discussed by rule makers in the wake of the subprime crisis, this includes enhancements achieved through more subordinated tranches and other types of collateralization. – See credit enhancement, claw-back clause, guarantee, loan commitment, irrevocable, pledge, repatriation option, support, implied, special purpose entity consolidation.

Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/