Interest rates instruments

[nitinsiwach]

What happens if the creditworthiness of the company that has taken a floating rate loan declines int he middle of the loan term? Is the lender allowed to change the terms or stop rolling the loan forward? Or is he stuck in a raw deal?

 

[S2000magician]

That depends on the terms of the loan. If there are provisions to modify the agreement, then it can be modified. If not, then it cannot.