Definition

1. Noun:
   • An assessment of creditworthiness: A credit rating is a formal evaluation, typically expressed as a grade or score, that estimates the likelihood of a person, company, or government entity (the debtor) repaying their debts and fulfilling their financial obligations. It is based on an analysis of their financial history and current economic circumstances.

Usage

• Noun:
  • A good credit rating is essential for obtaining a favorable loan.
  • The agency downgraded the country's credit rating due to political instability.
  • Before approving the mortgage, the bank will check your credit rating.

Advanced Usage

• "to have a credit rating of...": to possess a specific rating grade (e.g., AAA, Baa2, 750).
  • The corporation strives to maintain a credit rating of AA or higher.
• "to affect/impact one's credit rating": to influence the score or grade.
  • Missing a payment can negatively impact your credit rating.

Variants and Related Words

• Credit score (n): A numerical expression, typically used for individuals, based on a levelized analysis of credit files.
  • Your credit score is a key component of your overall credit rating.
• Creditworthiness (n): The quality of being deemed suitable to receive financial credit.
  • The lender assessed the borrower's creditworthiness.

Synonyms

• Credit assessment: The process of evaluating creditworthiness.
• Bond rating: A specific type of credit rating for debt securities.

Related Phrases

• Credit rating agency (n): An organization that assigns credit ratings.
  • Standard & Poor's is a major credit rating agency.

Noun

1. an estimate, based on previous dealings, of a person's or an organization's ability to fulfill their financial commitments