Credit rating

A credit is a quantitative assessment of an individual or company's creditworthiness that indicates the ability to fulfil financial obligations.  Credit ratings are used by lenders, investors, and other stakeholders to evaluate the risk of lending money or extending credit. They reflect the likelihood that a borrower will repay debt on time and in full. Ratings are typically issued by credit rating agencies for businesses and governments or derived from credit scores for individuals. Credit ratings are expressed in categories such as "AAA" (highest creditworthiness) to "D" (default risk). A strong credit rating can lead to favorable loan terms, while a poor rating may result in higher interest rates or difficulty securing credit.