Credit Analyst

DEFINITION of 'Credit Analyst'

A financial professional who has expertise in evaluating the creditworthiness of individuals and businesses. Credit analysts determine the likelihood that a borrower will be able to meet financial obligations and pay back a loan, often by reviewing the borrower's financial history and determining whether market conditions will be conducive to repayment.

BREAKING DOWN 'Credit Analyst'

Credit analysts, besides being skilled at financial statement analysis, use a number of ratios when reviewing the financial history of a potential borrower. They focus on determining whether the borrower will have sufficient cash flows by comparing ratios to industry standards, other borrowers and historical trends. For example, a credit analyst at a bank may analyze a company's financial statements before providing a loan for a new factory.

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