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 ?
The agency expects to publish the college ratings system before the 2015-16 school year and will continue to refine the ratings system over time based on user and institutional experience, input from the field, and the availability of additional data.
Vaizey added that "simplification of the ratings system benefits both industry and consumers and will help ensure that the millions of games sold in the UK each year are being played by the audiences they were intended for.
SPA welcomes the ASP and other groups as partners in the effort to develop a voluntary ratings system," said SPA counsel Mark Traphagen.
The board was set up in 1968 as a voluntary ratings system.
The ratings system has four categories: E, 12, 17 and AO.
We were delighted to learn that parents and their children are very familiar with the ESRB ratings system, but it was even more gratifying to see that such a large majority of parents are aware of, researching and active in their children's videogame purchasing and playing," said Robin Kaminsky, EVP of Publishing for Activision.
The board, set up in 1968 as a voluntary ratings system, meets in the MPAA's headquarters in Encino, where there is a full-time administrative staff.
Only by using an independent ratings system such as PSVratings can an objective definition of violence be established.
The guidelines also call on exhibitors to help parents further understand the ratings system and inform customers of the reasons a film received a particular rating.
We will continue to work with them to ensure that the ratings system is a meaningful way to help customers make educated video game purchases.
Engle said the FTC has ruled out imposing an age-sensitive ratings system, a practice used in most foreign countries.
The 2005 Trailer Life Campground RV Parks & Services Directory (TL Directory), the most widely recognized and used campground rating system in the country, features a new campground ratings system to address the changing needs of RVers.