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  3. Risk Management
  4. Covenants

Entity Covenants

  • Public

Updated .

Covenants in Fairways Debt are agreements specifying actions and thresholds that the borrower must perform and respect. Covenants protect lenders when borrowers do not meet their requirements.

 

  1. Log in to your Fairways Debt account and select a customer account, if relevant.
  2. Navigate to Applications Applications.png > Debt & Derivatives > Entities.
  3. Click the relevant entity name.

In this example, we log in to the Main City account.

Entities_EN.png

  1. Click Covenants.

Overview_2_EN.png

The entity covenants display.

Note: Only covenants related to ongoing transactions are displayed.

Covenants_EN.png

Covenants_2_EN.png

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Description

A

Filter the covenants by status.

  • A covenant is in "Compliant" status when the actual value meets the expected threshold value.
  • A covenant is in "Warning" status when the actual value meets the threshold value defined to raise a warning.
  • A covenant is in "Not Compliant" status when the actual value does not meet the expected threshold value.
  • A covenant is in "No Threshold" status when there is no data for the covenant or the threshold's start date has not been reached.

Note: If the message "Multiple Currencies on Entity" is displayed and the currency type selected for the entity is "Transaction Currency", check that the same currency is applied to all transactions in this entity. For more information, see Configure an Entity Scenario. Contact your Finance Active consultant for further assistance.

B

Search for a covenant by:

  • Transaction name
  • Metric name

C

Sort covenants. Click an item:

  1. Once, to sort by ascending alphabetical or numerical order. An arrow directing to the top ↑ displays beside the sorted item.
  2. Twice, to sort by descending alphabetical or numerical order. An arrow directing to the bottom ↓ displays beside the sorted item.
  3. Three times, to cancel sorting. No arrow displays.

To sort using multiple criteria:

  1. Click the first criteria.
  2. Push and hold this key on your keyboard:
    • ctrl for Windows
    • cmd for Mac
  3. Click the second criteria while holding the key from the previous step till you have configured all the criteria.

In this example, the data is sorted by the next publication date in ascending order, then by the covenant status by alphabetical order.

Sort_EN.png

Note: The counter starts with 2 because the 1st criterion is automatically defined as the transaction group.

D

Add, edit, delete and/or export covenants.

E

Click a covenant name to open the covenant profile.

If present, hover over the information icon InformationIcon.png beside the covenant name to display the associated verbiage.

If present, hover over the formula icon f(x) to display the metric formula.

From the covenant profile, you can:

F

Click the clock icon Clock_Icon.png to view the change history on a dedicated panel. Contact your Finance Active consultant to enable the Covenants module history beta feature.

Covenants can also be accessed by clicking on their name in the Covenants tab on the related transaction profile.

TransactionProfileCovenants_EN.png

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