credit risk

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Credit risk

The risk that an issuer of debt securities or a borrower may default on its obligations, or that the payment may not be made on a negotiable instrument. Related: Default risk.

Default Risk

The risk that a debtor will be unable to pay back its loans. Default risk goes up if a debtor has large number of liabilities and poor cash flow. Generally speaking, companies and persons with high default risk stand a greater chance of a loan being denied and pay a higher interest rate on the loans they do receive. See also: Bankruptcy.

credit risk

The risk that a borrower will be unable to make payment of interest or principal in a timely manner.
References in periodicals archive ?
Global Banking News-February 22, 2011--Irish central bank to test credit worthiness of credit unions(C)2011 ENPublishing - http://www.enpublishing.co.uk
Summary: ABU DHABI: The United Arab Emirates President Sheikh Khalifa bin Zayed al-Nahyan approved Monday the launch of an office to assess individuals' credit worthiness, which an official said should help banks make better lending decisions.
The credit worthiness will take time as businesses recover.
The Bulgarian Credit Agency further notes that the municipality's credit worthiness is good in short-term and long-term perspective and it enjoys high level of trust from creditors.
Summary: By reducing the impact of past financial mistakes, you can improve your credit worthiness. However, there are no quick fixes.
Financial commentators claim this classifies the credit worthiness of the mighty Newcastle alongside that of junk bonds.
Dora Fiani of Coface, a credit worthiness rating company, stressed the need to arrive at a shared definition of the SME.
The target market was segmented into multiple categories including customers who have a loan or credit line with another financial institution; customers who used to have home-equity loans or credit lines with Provident; and non-Provident customers (subdivided into "pre-approved" and "invitation to apply" categories determined by the prospect's credit worthiness).
A decline in credit worthiness, a weak economy, and competitive pressures influenced mild increases in credit availability of loans for consumer purchases.
The IFC will work with several South African retail banks and the credit bureau system over the next three years to improve the credit reporting environment and credit worthiness for small business in South Africa.
Dun & Bradstreet (and other reporting agencies') credit ledgers ranked men by their individual achievements and credit worthiness, in ways that "calibrated [personal] identity in the language of commodity." (p.

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