Credit Rating

What Does Credit Rating Mean?
An assessment of the credit worthiness of individuals and corporations. It is based upon the history of borrowing and repayment, as well as the availability of assets and extent of liabilities.

Investopedia explains Credit Rating
Credit is important since individuals and corporations with poor credit will have difficulty finding financing, and will most likely have to pay more due to the risk of default.

Filed Under: Bonds, Fixed Income, Personal Finance

Related Terms

Bond Rating
Collection Agency
Credit Enhancement
Credit Reference
Credit Risk
Default Model
Default Risk
Fixed-Income Style Box
Gross Debt Service Ratio - GDS
Impaired Credit
More Related Terms

Related Links

What Is A Corporate Credit Rating? - Is the bond you're buying investment grade, or just junk? Find out how check the score.
Why Bad Bonds Get Good Ratings - Credit ratings are not the only tool to rely on when assessing bonds. Find out why they sometimes fall short.
The Debt Ratings Debate - Lack of competition and potential conflicts of interest have called the value of these ratings into question.
The Importance Of Your Credit Rating - Do you know how your borrowing activities affect your credit rating? Find out here.
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