The risk that the credit rating of a borrower and therefore the ability to make payments may depreciate owing to an industrial or natural disaster, regulatory changes, a takeover or a corporate restructuring. In 1989 Standard & Poor's introduced event risk ratings.
The risk of an unexpected, future decrease in credit quality that is a result of events such as a corporate acquisition or material changes in taxes, laws, or regulations.
The likelihood that the rating of a bond will drop due to an event, such as the taking on of additional debt or a recapitalization by a company. see also risk.
The insurable risk from an occurence such as a catastrophe (eg. earthquake, hurricane)
The likelihood that an investment's value will change as the result of unexpected events, such as corporate restructurings, a takeovers, regulatory shifts or disasters.
The risk that an event will have a negative impact on a bond issuer's ability to pay its creditors.
The risk that the ability of an issuer to make interest and principal payments will change because of rare, discontinuous, and very large, unanticipated changes in the market environment such as (1) a natural or industrial accident or some regulatory change or (2) a takeover or corporate restructuring.
The risk that some unexpected event will cause a substantial decline in the market value of a security, such as natural disasters, technology failures, human error, political upheavals, or war.
External factors such as regulatory changes, natural disasters, corporate takeovers, or accidents that may affect a bond issuer's ability to meet its obligations.
In the case of an associated takeover development, such as additional debt issuance, risk that a bond's credit quality will decline and a lower rating will be justified. Corporate bonds that include protective covenants, such as poison puts, are given event risk covenant rankings by Standard & Poor's. Ratings range from E-1 (highest) to E-5 (lowest). Covenant rankings are supplemental to basic bond ratings. See: Indenture; Rating; Takeover
