Credit Rating
Credit Analysis
Definition
An assessment of the creditworthiness of a borrower (individual, corporation, or government), indicating the likelihood of default on debt obligations.
Key Points
- Assesses default probability
- Affects borrowing costs
- AAA is highest rating, D is default
Examples
AAA (highest)BBB (investment grade)BB (speculative)Quick Info
Category
Credit Analysis
Related Topics
creditworthiness
default risk
bond ratings