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What is a credit rating?

What is a credit rating? Here are some definitions.

Noun
  1. (finance) An estimate, based on a company, government or person's history of borrowing and repayment and/or available financial resources, that is used by creditors to determine the maximum amount of credit that can be extended without undue risk.
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Lenders aren't just cautious about lending to people with a bad credit rating.
But in other countries, you may need to build up a credit rating from scratch or there may be problems with exchange controls.
It is one of a handful of American companies with an AAA credit rating, something it has sustained for 85 years.
The lower the credit rating, it is believed, the higher the chances are for a country to default on its sovereign debt obligations.
If the issuer has a bad credit rating, bond traders demand higher yields to compensate for the extra risk.
Instead of selling loans with fixed interest rates, they offer tailored rates based on your credit rating.

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