Financial Glossary: Credit Rating


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Credit Rating

Credit Rating

A formal evaluation of an individual's or company's credit history and capability of repaying obligations.

Formal evaluation of a company's ability to pay Interest and repay principal on borrowed money, as published by a credit rating agency or service.

Any number of firms investigate, analyze, and maintain records on the credit responsibility of individuals and businesses.For example, Standard and Poor's and Moody's Investor Service rate corporate bonds. The credit rating is based on the number of outstanding debts and whether debts have been repaid in a timely manner in the past.

Posted by Henley & Partners Group Holdings Ltd

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