Garrett Motion Inc. 10-Q

Item 3. Quantitative and Qualitative Disclosures About Market Risk. There have been no material changes to the Company’s quantitative and qualitative disclosures about market risks as disclosed in Part II, Item 7A, Quantitative and Qualitative Disclosures About Market Risks, in our 2020 Form 10-K. However, following the emergence from Chapter 11, the Pre-petition Credit Agreement and the Debtor-in-possession Term Loan (as well as the Indenture) have been replaced by the Credit Agreement, and our exposure to risk based on changes in interest rates now relates primarily to our Credit Agreement. The Company has also resumed ordinary course hedging transactions with its banks and is in a position to hedge foreign currency risks as well as interest rate risks, in each case subject to market conditions. The Credit Agreement bears interest at floating rates. For our outstanding borrowings under the Credit Agreement as of September 30, 2021, a 50 basis point increase (decrease) in interest rates would not have materially increased (or decreased) our interest expense compared to the amount of interest that would have been incurred in the period since emergence based on the rates of interest in effect at September 30, 2021. For additional information regarding our Credit Agreement, see Note 15, Long-term Debt and Credit Agreements of the notes to the Consolidated and Combined Financial Statements. 58