Material Adverse Change Clauses in Loan Agreements and Current Trends and Risks

DBRS Limited (DBRS Morningstar) published a commentary on how material adverse change clauses are generally used and applied in loan agreements, titled “Material Adverse Change Clauses in Loan Agreements and Current Trends and Risks.” Additionally, DBRS Morningstar discusses how some market participants have exempted the impacts of the Coronavirus Disease (COVID-19) from material adverse change provisions, and the risks associated with overly broad clauses.