Introduction of the term credit rating

Question

Give a brief introduction of the term credit rating? And also write down its major features?

Answer 1

Credit rating is the rating that gives the approximation of the individual company, corporation of country's worth. Credit bureau creates an evaluation of borrower's credit history and then according to that the actions on it occur. Credit rating shows the capacity of the borrower to pay the debt to the lender on request to the credit department. The computation of it based on the financial history, liabilities and current assets. The possibility of a borrower to pay-back of its loan can be seen by this that tells a lender or investor about it.