Impaired credit

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 ?
The Borrower's impaired credit profile made it difficult to obtain conventional financing.
The decision to restate was taken in the interest of good corporate governance in order to provide clarity for Shareholders due to information which came to light about an existing impaired credit exposure after approval of the original set of financial statements on 27 February 2015.
According to a Reuters report, one in four South Africans is unemployed and the number of borrowers with impaired credit records had risen to nearly 50 percent from 36 percent in 2006.
Guarantees will only be available to borrowers who can afford the mortgages, while those with impaired credit ratings will be excluded, the Treasury insisted.
Provisions for impaired credit rose 27% year-on-year to 822 mln euros.
Stulz, Ohio State University and NBER, "Financial Policies and the Financial Crisis: Impaired Credit Channel or Diminished Demand for Capital?
LENDING CHANGES The Financial Services Authority's proposals on responsible lending include: requiring all mortgage applicants to verify their income, to help prevent mortgage fraud and ensure consumers do not overstate their earnings; imposing affordability tests for all mortgage applications, and making lenders responsible for assessing a borrower's ability to pay; and extra measures to protect vulnerable mortgage customers with an impaired credit history.
GSG will also host a free webinar on auto lending options for members with impaired credit at 1:00 p.
The group, which lends to people with impaired credit histories, released long-delayed results late last year for the nine months to September 2009 showing a pre-tax loss of pounds 347.
Swedbank, the largest lender in the Baltic states, said on April 27 that impaired credit and loans that are more than 60 days overdue have stopped rising in the region and that the real estate market has "shown signs of recovery.
The Authority is also calling for a ban on mortgages containing "toxic combinations" which put borrowers at a higher risk, such as lending a high proportion of a property's value to people with impaired credit histories.
Officials at the Financial Services Authority are also calling for a ban on mortgages containing "toxic combinations" which put borrowers at a higher risk, such as lending a high proportion of a property's value to people with impaired credit histories.