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. |