Credit quality


Also found in: Dictionary, Thesaurus, Medical.

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 ?
The expected ratings are based on the structure of the bonds issued, and the credit quality of the collateral securing the bonds, which consists of annual payments and strategic contribution payments by the three largest domestic tobacco manufacturers -- Philip Morris Inc.
Fitch believes if eminent domain powers are restricted to a significant degree, municipal credit quality could be restrained or negatively affected.
These notes are issued under state legislation revised in 2003 to enhance the TRANs' credit quality.
The ratings are based on the structure and credit enhancement of the bonds issued and the credit quality of the collateral securing the bonds, which consists of annual payments and strategic contribution payments by the three largest domestic tobacco manufacturers -- Philip Morris Inc.
The ratings are based on the structure of the bonds issued and the credit quality of the underlying collateral securing the TASC bonds, which consists of annual payments and strategic contribution payments by the three largest domestic tobacco manufacturers -- Philip Morris Inc.