Impaired credit

(redirected from Impaired Credits)

Impaired credit

Result of a borrower's reduced credit rating.

Impaired Credit

A credit rating or FICO score that has recently been reduced. A company or individual may have impaired credit if its financial situation changes in such a way that there is a greater likelihood of defaulting on a bond or business or personal loan. Impaired credit makes it more difficult for a company or person to borrow more funds.
References in periodicals archive ?
Although asset quality remains weak as evidenced by a higher than sector average NPL ratio, impaired credits started to decline in the final quarter of FY 2012, due to write-offs.
This is in view of the challenges associated with restoring net profitability to a solid footing following sustained net losses and the increase in impaired credits last year.
Moody's understands that the impaired credits include some of the bank's largest customers and relate to both domestic and regional high-profile corporate defaults," he said, adding that a decline in asset quality would continue in 2010.
Although the vast majority of the insured portfolio is sound, like their competitors, XLCA and XLFA have exposure to some impaired credits.
Like its competitors, XLCA and XLFA have exposure to some impaired credits but Fitch believes these are manageable at the present time.
The private sector banks, which have generally been aggressive in maintaining or increasing reserve levels and in attacking their stock of impaired loans with heavy chargeoffs, appear to be much better positioned to absorb substantial increases in impaired credits in the private sector, although a haircut to government exposure combined with a substantial increase in impaired loans could also lead to significant hits to equity