Credit quality


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Credit quality

A measure of a bond issuer's ability to repay interest and principal in a timely manner. Rating agencies assign letter designations such as AAA, AA, and so forth. The lower the rating, the higher the probability of default.

Credit Quality

A measure of the likelihood of default, especially by a bond issuer. Credit ratings agencies determine credit quality in order to provide bond ratings; they may change these from time to time. FICO scores are measures of the credit quality of individuals. See also: Investment-grade, Junk.
References in periodicals archive ?
Markets with the leading increases in average credit quality compared to Q4 2008 were Cleveland, Jacksonville and San Diego.
These districts are among the state's largest, and have a Fitch rating or evaluation showing good credit quality.
The guidelines are based on credit quality and individual obligor concentrations.
The new report 'Positive Global Corporate Finance Rating Activity Continues in 2006, Outlooks Offer Mixed View of Credit Quality Going Forward' is available on Fitch's web site, www.
The credit quality of the industry, in turn, will be significantly influenced by the underlying ratings of the three major domestic tobacco manufacturers and Fitch's view of the relative strength of those three manufacturers within the overall domestic tobacco industry.
The inclusion of these additional assets will affect the consolidated credit protection measures and overall credit quality of the guarantor, ENERGISA, but should be similar to the current consolidated credit quality of CFLCL, which is acceptable for the assigned rating.