Junior Credit Ranking
type: Class
preferred label: Junior Debt Priority
subclass of: RfuC0yNDKhOWj8FHvjuYyg
definition: Junior Credit Ranking refers to the priority status of junior debts, which are ranked above junior subordinated debts but below senior and senior subordinated debts in the event of liquidation. This ranking ensures that junior creditors are paid before junior subordinated creditors from the proceeds of the liquidated assets, providing them with a lower level of security compared to senior debts but higher than junior subordinated debts.