Glossary Term: Credit Default
The Credit Default processes are triggered when a Party’s Credit Cover Percentage (CCP) exceeds a number of thresholds. The Level 1 Credit Default process is triggered when the CCP exceeds 80% and the Level 2 Credit Default process is triggered when the CCP exceeds 90%. The Party must reduce the Credit Cover percentage below 80% by the end of the query period to resolve the Credit Default
BSC defined definition
means Level 1 Credit Default or Level 2 Credit Default; Is a status which a Trading Party may enter should its Credit Cover Percentage exceed thresholds specified in the BSC.