Credit Support

Definition

Credit Support is a general term used to denote any mechanism that provides Credit Risk Mitigation (reduction of Credit Risk. Depending on the context it may denote:

• Collateral agreements in the context of Credit Support Annex in derivatives transactions
• Credit Enhancement obtained through Subordination or other means in Securitisation transactions
• A Financial Guarantee or other similar tool in the context of Creditworthiness assessment e.g. by a Credit Rating Agency