FOLIO Ontology

Junior Subordinated Credit Ranking

IRI:
https://folio.openlegalstandard.org/R99hAIIt4d9M4gVLWNXntqw
Preferred Label Lowest Priority Debt
Alternative Labels
Bottom Tier Debt Bottom-Rank Subordinated Debt

Definition

Junior Subordinated Credit Ranking refers to the priority status of junior subordinated debts, which are ranked below all other debts, including senior, senior subordinated, and junior debts, in the event of liquidation. This ranking ensures that junior subordinated creditors are the last to be paid from the proceeds of the liquidated assets, providing them with the lowest level of security and the highest risk compared to other creditors.

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Additional Information

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