ESMA · ESMA_QA_1380 Answer Published

Annex 3: Underlying Exposures - Commercial Real Estate - Covenant Breach / Trigger

Regulation
Securitisation Regulation (EU) 2017/2402
Topic
Securitisation Disclosure Templates
Submitted
2019-05-27
Answered
2019-05-27
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Question

How should multiple breaches/triggers be listed?

Answer

[ESMA 33-128-563 Securitisation Q&A, Q&A 5.5.3] Response options ‘ICDS’ (‘Interest Coverage Ratio or Debt Service Coverage Ratio’) or ‘ICDL’ (‘Interest Coverage Ratio or Debt Service Coverage Ratio or Loan-to-Value’) are intended to capture the presence of multiple covenant breaches/triggers. Where these are insufficient to describe the breaches/triggers, then the option ‘OTHR’ (representing ‘Other’) should be entered.
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This Q&A is published by European Securities and Markets Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

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