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Credit Rating

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Dictionary Says

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.

Investopedia Says

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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