Credit analysis


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Credit analysis

Evaluating information on companies and bond issues in order to estimate the ability of the issuer to live up to its future contractual obligations. Related: Default risk.

Credit Analysis

The process of determining the likelihood of default, especially by a bond issuer. Credit rating agencies conduct credit analysis in order to provide bond ratings; they may change these from time to time. Bond investors likewise conduct credit analysis. For example, if an investor's credit analysis indicates that a bond rating is about to decrease, he/she will be unlikely to invest in that bond, as it will lead to locking in a lower interest rate at a higher level of risk. On the other hand, if credit analysis shows that a bond rating is about to increase, an investor will be more inclined to buy that bond, as it provides a lower level of risk while also giving him/her a higher coupon. See also: Investment-grade, Junk.
References in periodicals archive ?
National Cooperative Bank (NCB) announced that Sandra Braun has joined the bank as vice president, heading the Commercial Loan Underwriting and Credit Analysis Team.
CCI), a nationwide credit reporting firm for the mortgage industry, has implemented Market Kinetix's Mortgage Action Plan credit analysis solution, offering the industry's most streamlined, easy-to- use credit analysis solution to its broad base of mortgage broker clients.
The XBRL activity that will have widespread impact on CPAS in the near term is Bank of America's pilot-testing of XBRL reporting by their commercial loan customers who provide financial statements for lending and credit analysis purposes.
These are, first, the adequacy of banks' credit analysis processes; second, the effectiveness of exposure measurement; and third, the role of stress testing of counterparty exposure.
20 /PRNewswire/ -- Recent progress on structural reforms and the economy's increasing resilience to external shocks are behind Poland's upgrade and positive outlook, according to a new Credit Analysis report by Duff & Phelps Credit Rating Co (DCR).
There is a question whether adequate credit analysis was performed by creditors of Long-Term Capital, which needs to be examined carefully during the next few weeks.
BankStat is the market leader in the bank credit analysis field, providing current and historical financial data, software and consulting services to over 200 major financial institutions worldwide.
Privately owned and independent, DBRS offers in-depth credit analysis of corporate and government issues in North America, Europe, Asia and Latin America.
Martin has joined Fitch as a senior vice president with primary responsibility for sovereign credit analysis, announced Claire G.
Privately owned and independent, DBRS offers in-depth credit analysis of corporate, financial institutions and government issues in North America, Europe, Asia and Latin America.
20 /PRNewswire/ -- Houlihan Lokey Howard & Zukin announced today that its corporate credit rankings have been added to Bloomberg Financial Market's on-line credit analysis rating information.

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