A company’s “creditworthiness” and financial health go hand in hand, and a key assessment of a company’s ability to pay its financial obligations is its credit rating. While a credit rating does not guarantee performance or reflect other types of risk (such as liquidity or market risks), it is a factor that carries great weight in predicting future behavior. In this session, our hosts will review a “Recovery Plan” that will discuss impacts on deals from your company’s credit rating as well as your counterparty’s credit rating, and how you can address those situations to “recover” the deal! Drawing from their legal and accounting backgrounds as viewed against the backdrop of oil & gas bankruptcies, M&A markets, and commodity price volatility in the energy space in 2016, the panel will identify issues and discuss contract language to address those issues before credit rating problems occur, as well as potential responses to consider when an actual credit rating downgrade occurs.
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