CONTINGENT CREDIT RISK

The RISK of loss arising from a potential CREDIT RISK exposure that may appear in the future, such as drawdown on a REVOLVING CREDIT FACILITY or payment under a GUARANTEE or LETTER OF CREDIT. A subcategory of CREDIT RISK. See also CONTINGENT LIABILITY, CORRELATED CREDIT RISK, DIRECT CREDIT RISK,SETTLEMENT RISK, SOVEREIGN RISK, TRADING CREDIT RISK.

More On This Topic



Link to This Definition
Did you find this definition of CONTINGENT CREDIT RISK helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary