Credit Rating
Credit rating is an evaluation of an individual's or entity's creditworthiness, indicating the likelihood of timely repayment of debts. Ratings are assigned by credit rating agencies.
Credit rating is an evaluation of an individual's or entity's creditworthiness, indicating the likelihood of timely repayment of debts. Ratings are assigned by credit rating agencies.
Introduction: A credit rating is an evaluation of the credit risk of a prospective debtor, predicting their ability to pay back the debt and an implicit forecast of the likelihood of the debtor defaulting. This rating, expressed through a letter grade or score, influences the interest rate at which the debtor will be able to borrow money. Credit ratings are assigned by credit rating agencies such as Standard & Poor’s (S&P), Moody’s, and Fitch Ratings, and apply to both entities (corporations, governments) and individuals.
Key Aspects of Credit Ratings:
Importance of Credit Ratings: