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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Credit rating  

Definition 1.

An evaluation of an individual's or company's ability to repay obligations or its likelihood of not defaulting See: Creditworthiness.
 

Definition 2.

An assessment of the credit worthiness of individuals and corporations. It is based upon the history of borrowing and repayment, as well as the availability of assets and extent of liabilities.
 

Definition 3.

A published ranking, based on detailed financial analysis by a credit bureau, of one's financial history, specifically as it relates to one's ability to meet debt obligations. The highest rating is usually AAA, and the lowest is D. Lenders use this information to decide whether to approve a loan.
 
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