Some lenders may view one or two missed repayments relatively benignly and your credit rating may be largely unaffected. |
However, if a company is losing its credit rating, financial resources may suddenly disappear, leading to debt. |
It has lost its triple-A credit rating and can't assume that lenders will be willing to refinance its growing debt forever. |
If the issuer has a bad credit rating, bond traders demand higher yields to compensate for the extra risk. |
The company retains an investment-grade credit rating of BBB and throws off huge sums of cash. |
But in other countries, you may need to build up a credit rating from scratch or there may be problems with exchange controls. |