Credit rating is important for investors because they can help assess the risk associated with investing in a particular company or government bond.
A higher credit rating suggests a lower risk of default, indicating that the borrower is more likely to repay its debts. Maintaining a good credit score can help borrowers access loans, secure better interest rates, and save money on insurance premiums.
It help lenders, investors, and other stakeholders make informed decisions about the credit risk associated with a specific borrower or investment.
Credit risk score systems give financial institutions’ management teams, boards, and auditors a more accurate measure of portfolio risk and the trends in risk levels.
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