Credit Rating
Definition of 'Credit Rating'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. |
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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. |
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Articles Of Interest
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Corporate Bonds: An Introduction To Credit Risk
Corporate bonds offer higher yields, but it's important to evaluate the extra risk involved before you buy. -
The Importance Of Your Credit Rating
A great starting point for learning what a credit score is, how it is calculated and why it is so important. -
The Debt Ratings Debate
Lack of competition and potential conflicts of interest have called the value of these ratings into question. -
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. -
What Is A Credit Score?
Learn about the components and considerations of personal and financial data that determine your credit score. -
What Is A Corporate Credit Rating?
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The Ins And Outs Of Corporate Eurobonds
Corporate eurobonds simplify expansion for MNCs, though there are a few more hoops to jump through. -
What's the difference between EBITDA, EBITDAR and EBITDARM?
EBITDA, EBITDAR and EBITDARM are analytic indicators commonly used by management to evaluate the financial performance and resource allocation for operating units within a company. These tools ... -
What does investment grade mean?
Credit ratings provide a useful measure for comparing fixed-income securities, such as bonds, bills and notes. Most companies are issued a rating based on their financial strength, future prospects ... -
Why do commercial bills have higher yields than T-bills?
The reason that commercial bills have higher yields than T-bills is due to the varying credit quality of each bill type. The credit rating of the entity issuing the bill gives investors an idea ...
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