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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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Examples
The company retains an investment-grade credit rating of BBB and throws off huge sums of cash.
It is one of a handful of American companies with an AAA credit rating, something it has sustained for 85 years.
Defaulting on a debt to a credit card firm or catalogue company could result in a damaged credit rating but it should not put your home at risk.
The lower the credit rating, it is believed, the higher the chances are for a country to default on its sovereign debt obligations.
But in other countries, you may need to build up a credit rating from scratch or there may be problems with exchange controls.
Some lenders may view one or two missed repayments relatively benignly and your credit rating may be largely unaffected.

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