The purpose of this study is to examine the effect of a modified audit opinion on the debt contract (interest spread, loan size, covenant, collateral, and loan maturity). Samples of this study are credit facilities obtained by listed firms in 2013-2016 with total observations of 660. Results of this study show that in general there is limited effect of modified audit opinion on debt contract. We only find evidence that material uncertainties type of modified audit opinion causes higher interest rates. Modified audit opinion has significant effect on reducing the number of financial covenants in case of inadequacy type opinion only. We do not find any significant effect of modified audit opinion on the number of general covenants. We also only find evidence of the effect of modified audit opinion on loan maturity for going concern opinion type. Modified audit opinion does not affect the possibility of the need collateral in the debt contract. The insignificant results of modified audit opinion on debt contracts maybe due to lenders in Indonesia still use soft information (relationship lending) rather than hard information in the form of audit report.