credit rating

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Credit rating

An evaluation of an individual's or company's ability to repay obligations or its likelihood of not defaulting See: Creditworthiness.

Credit Rating

1. See: Bond rating.

2. See: FICO score.

credit rating

A grading of a borrower's ability to meet financial obligations in a timely manner. Credit ratings are set by lenders and by independent agents for companies, individuals, and specific debt issues. See also bond rating.

Credit rating.

Your credit rating is an independent statistical evaluation of your ability to repay debt based on your borrowing and repayment history.

If you always pay your bills on time, you are more likely to have good credit and therefore may receive favorable terms on a loan or credit card, such as relatively low finance charges.

If your credit rating is poor because you have paid bills late or have defaulted on a loan, you may be offered less favorable terms or may be denied credit altogether.

A corporation's credit rating is an assessment of whether it will be able to meet its obligations to bond holders and other investors. Credit rating systems for corporations generally range from AAA or Aaa at the high end to D (for default) at the low end.

credit rating

an assessment of the creditworthiness of a firm or an individual, which indicates the amount of CREDIT they can reasonably be allowed by a supplier.

The creditworthiness of a company can often be assessed on the basis of information derived from the company's past annual report and accounts, and from confidential details provided by the company's bank. Additionally, there are a number of specialized credit rating companies, such as Dunn and Bradstreet in the UK, who provide information about the creditworthiness of companies in return for a fee.

The creditworthiness of individual customers is more difficult to assess and is often based on some hard information such as court bankruptcy proceedings and default information on hire purchase agreements, together with circumstantial information such as the postal areas in which a potential debtor lives (indicating a suburb or inner city estate, for example). Firms specialize in collecting and processing such data and provide credit ratings in return for a fee. Under the terms of the UK CONSUMER CREDIT ACT, an individual has a right to inspect any credit record kept about them by such a firm.

Suppliers use credit ratings as a means of determining the maximum amount of credit to allow a customer as part of their CREDIT CONTROL procedures.

References in periodicals archive ?
15 November 2013 : S&P raises its long-term foreign currency sovereign credit rating for Egypt to B-/B from CCC+/C, with a 'stable' outlook.
The seven-member UAE federation is unrated, and the absence of a sovereign credit rating has remained an obstacle to widening the investor base following Dubai's debt crisis which rattled global financial markets last year.
He said last month the global credit crisis had lent urgency to Dubai's plan to seek a sovereign credit rating, as banks become more discerning about who they lend money to.
NEW YORK -- Standard & Poor's today downgraded its sovereign credit ratings on the Oriental Republic of Uruguay.
rating is a preferred option for the developing countries that do not have a sovereign credit rating and would like to know its investment attractiveness to the foreigners.
18 October 2011 : S&P cut Egypt's long-term foreign currency sovereign credit rating to BB- from BB and its long-term local currency rating was cut to BB- from BB+.
The agency cut Cyprus's long-term sovereign credit rating to triple -C, eight notches into junk territory, from triple -C-plus.
ySTANBUL (CyHAN)- Standard & Poor's Ratings Services has lowered its long-term sovereign credit rating on the Republic of Cyprus to 'B' from 'BB', the ratings agency reported.
Strong interest in dollar bonds floated by local players came as all three global credit rating agencies upgraded the sovereign credit rating on South Korea recently.
According to an official announcement, issued here Tuesday by Finance Ministry, Standard & Poor's Rating Services have announced on Monday that it maintain the long-term sovereign credit rating on the Republic of Cyprus to 'BBB'.
Tokyo, Ramadan 24, 1432, Aug 24, 2011, SPA - Stocks in Tokyo fell in Wednesday morning trading on weak US economic data and a downgrade in Japan's sovereign credit rating by Moody's Investors Service.
33 billion) in a treasury bill sale on Tuesday, a day after being accorded the lowest sovereign credit rating over fears private investors will have to share the burden of a potential Greek debt restructuring.