credit rating


credit rating
An assessment of the creditworthiness of an individual or a firm, i.e. the extent to which they can safely be granted credit. Traditionally, banks have provided confidential trade references, but more recently credit-reference agencies (also known as credit reporting agencies) have grown up, which gather information from a wide range of sources, including the county courts, bankruptcy proceedings, hire-purchase companies, and professional debt collectors. This information is then provided, for a fee, to interested parties. The consumer was given some protection from such activities in the Consumer Credit Act (1974), which allows an individual to obtain a copy of all the information held by such agencies relating to that individual, as well as the right to correct any discrepancies. There are also agencies that specialize in the corporate sector, giving details of a company's long-term and short-term debt. This can be extremely important to the price of the company's shares on the market, its ability to borrow, and its general standing in the business community. Credit ratings for the stocks of large corporations are provided by such institutions as Moody's Investor Service and Standard and Poor.

Accounting dictionary. 2014.

Look at other dictionaries:

  • Credit rating — of governments around the world by Standard Poor s:   AAA …   Wikipedia

  • credit rating — n. A number calculated by examining a person’s assets, liabilities, and financial history that tells a lender how likely that person is to pay back a loan. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy… …   Law dictionary

  • credit rating — Credit reporting agencies collect information about consumers financial affairs and sell this information to their clients. Credit ratings are set by creditors who pass this information to the reporting agencies. It consists of a nine point… …   Glossary of Bankruptcy

  • credit rating — ☆ credit rating n. the rating given to an individual or business firm as a credit risk, based on past records of debt repayment, financial status, etc …   English World dictionary

  • credit rating — credit ,rating noun count financial information about someone that a bank or store uses for deciding whether to lend them money or give them CREDIT …   Usage of the words and phrases in modern English

  • credit rating — credit .rating n a judgment made by a bank or other company about how likely a person or business is to pay their debts …   Dictionary of contemporary English

  • credit rating — An evaluation of an individual s or company s ability to repay obligations or its likelihood of not defaulting See: creditworthiness. Bloomberg Financial Dictionary * * * credit rating credit rating ➔ rating * * *    Credit ratings measure a… …   Financial and business terms

  • Credit Rating — von Dr. Oliver Everling und Stephanie Gareis Rating ist eine Methode zur Einstufung von Sachverhalten, Gegenständen oder Personen. Meist wird unter Rating das Ergebnis des Beurteilungsverfahrens verstanden. Dies ist eine entsprechend der zugrunde …   Lexikon der Economics

  • credit rating — UK / US noun [countable] Word forms credit rating : singular credit rating plural credit ratings business financial information about someone that a bank or shop uses for deciding whether to lend them money or to give them credit …   English dictionary

  • credit rating — noun an estimate, based on previous dealings, of a person s or an organization s ability to fulfill their financial commitments • Syn: ↑credit • Hypernyms: ↑estimate, ↑estimation, ↑approximation, ↑idea * * * noun, pl ⋯ ratings [count] : a score… …   Useful english dictionary

  • credit rating — N SING Your credit rating is a judgement of how likely you are to pay money back if you borrow it or buy things on credit …   English dictionary


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.