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Issue guarantee

An undertaking by a third party to pay on the issue if the issuer has not.

How to read the number

Credit quality then belongs to the guarantor rather than the issuer — especially where the issuer was created solely for this issue.

When the metric lies

The guarantor is frequently connected to the issuer and depends on the same business. Whatever stopped one of them paying will reach the other.

Also known as: surety on an issue, guarantor of the issue

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