CREDIT APPROVAL MEMORANDUM

Borrower:	NVIDIA Corp.	Ticker:	NVDA
Sector:	Technology	Date:	2026-02-19
Internal Rating:	BBB	Score:	75/100
PD Rating:	0.15% - Low	Regulatory:	Special Mention

Executive Summary

This memorandum recommends approval of the proposed credit facility for NVIDIA Corp.. NVIDIA is the undisputed leader in AI hardware. Data center revenue has exploded, and software margins are expanding.

Key Credit Metrics

Metric	Value	Guideline/Covenant
Net Leverage (Debt/EBITDA)	4.4x	< 3.5x
Interest Coverage (EBITDA/Int)	3.8x	> 5.0x
Liquidity Score	70.2	> 70

Financial Analysis

Revenue & Earnings: The company generated $2594.5B in revenue in 2024, with EBITDA of $1001.9B. Forecasts indicate continued growth.

Liquidity: The company maintains a strong liquidity profile with access to capital markets and revolving credit facilities.

Cash Flow: Free Cash Flow conversion remains strong, supporting debt service and capital returns.

Risk Factors

Sustainability of demand at current levels is debated. Export controls to China impact a significant portion of potential addressable market.
Macroeconomic headwinds impacting consumer spending.
Technological disruption from competitors.

Recommendation

Approve. The risk/reward profile is favorable.

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Credit Officer