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Indebted US companies lack disclosure on rating triggers

Rating triggers are rarely disclosed in companies' filings with the Securities & Exchange Commission, despite being a prevalent feature of the borrowing agreements of US corporate debt issuers, according to a survey by Moody's Investors Service.

The report reveals that 88% of the 771 Ba1 or higher rated companies that participated have at least one, and often several, rating triggers in their funding contracts.

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