Credit risk

The risk that an issuer of debt securities or a borrower may default on his obligations, or that the payment may not be made on a negotiable instrument. Related: Default risk

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   The risk that an issuer might default on a payment or go into liquidation. Also known as counter party risk.

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credit risk UK US noun FINANCE
[C or U] the degree to which it is possible that a person, company, or government will not be able to pay back borrowed money: »

Race, gender, and religion will not be considered in assessing credit risk.

high/increased/low credit risk »

Analysts say 30% of the bank's loans have a high credit risk.

[C] a person, company, or government considered according to how likely they are to pay back borrowed money: bad/good/poor credit risk »

Lenders say that women are good credit risks, and are often better at budgeting.

[C] a person, company, or government that is unlikely to pay back borrowed money: »

Four years ago, I was refused a store card because I was considered a credit risk.


Financial and business terms. 2012.

Look at other dictionaries:

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  • credit risk — The risk to earnings or capital from the potential that a borrower or counterparty will fail to perform on an obligation. Usually, but not always, the obligation in question is a requirement to make interest or principal payments. Sometimes… …   Financial and business terms

  • Credit Risk — The risk of loss of principal or loss of a financial reward stemming from a borrower s failure to repay a loan or otherwise meet a contractual obligation. Credit risk arises whenever a borrower is expecting to use future cash flows to pay a… …   Investment dictionary

  • credit risk — The risk that a counterparty will default or delay payment on an obligation or that the value of a flow of payments will decline due to an adverse movement in the counterparty s credit rating See also political credit risk; transfer credit risk …   Big dictionary of business and management

  • credit risk — The risk taken when a loan is made that the borrower will default on or delay repayment of the principal or payments of interest. See also: political credit risk, transfer credit risk …   Accounting dictionary

  • credit risk — kredito rizika statusas Aprobuotas sritis draudimas apibrėžtis Nuostolių arba nepalankių finansinės padėties pokyčių rizika dėl vertybinių popierių emitentų, sandorio šalių ir visų skolininkų, darančių poveikį draudimo ar perdraudimo įmonei,… …   Lithuanian dictionary (lietuvių žodynas)

  • credit risk — noun The risk of loss due to a debtors non payment of a loan or other line of credit …   Wiktionary

  • credit risk — The *risk that a borrower may default on amounts owed on a *loan or other *credit arrangement …   Auditor's dictionary

  • credit risk — / kredɪt rɪsk/ noun a risk that a borrower may not be able to repay a loan …   Dictionary of banking and finance

  • credit risk — concern that one who received credit will not repay on time …   English contemporary dictionary

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