With the COVID-19 pandemic continuing to adversely impact businesses across the globe, for the past year lenders have been reviewing their portfolios for credit degradation. Credit agreements will often contain a clause in which further lending obligations cease upon the occurrence of a “Material Adverse Change” (MAC) or a “Material Adverse Effect” (MAE). In a few cases, clauses will expressly exclude pandemics from the definition of MAC or MAE. More typically, however, such clauses will define an MAC or MAE broadly to encompass any negative change to the borrower’s business, operations, balance sheet or financial condition.