creditworthiness

(noun)

The property of being creditworthy, when a person is deemed likely to repay debts and / or has an acceptable credit rating

Related Terms

Examples of creditworthiness in the following topics:

  • Analyzing Long-Term Liabilities

    • Analyzing long-term liabilities often includes an assessment of how creditworthy a borrower is, i.e. their ability and willingness to pay their debt.
    • As part of their analysis Standard & Poor's will issue a credit rating that is designed to give lenders and investors an idea of the creditworthiness of the borrower.

  • Times Interest Earned Ratio

    • The higher this ratio, or the more EBIT a company can produce relative to its required interest payments, the stronger the company's creditworthiness and overall financial health are considered to be.

  • Outputs of Accounting

    • Vendors who extend credit to a business require financial statements to assess the creditworthiness of the business.

  • Uses of Financial Reports

    • Vendors who extend credit to a business require financial statements to assess the creditworthiness of the business.

  • Types of Bonds

    • This is an unsecured bond backed only by the general creditworthiness of the issuer, not by a lien on any specific property.