credit downgrade
Lowered borrowing score
A credit downgrade is a reduction in the rating assigned to a borrower's creditworthiness—whether a corporation, government, or financial instrument like a bond.
Rating agencies issue downgrades when they judge that the borrower's ability to repay debt has weakened: The country's credit downgrade sent markets tumbling.
Downgrades typically raise borrowing costs, since lenders demand higher interest rates to offset increased risk.
- ratingAssigned evaluative score
- junkWorthless discarded items
- bondsTies that unite
- bond marketVenue for debt securities
- debtMoney owed another
debt ceiling · default · S&P · Fitch · AAA · investment · sovereign · treasury · creditworthiness · outlook · negative · watchlist · yield · risk premium · spread · borrowing · interest · recession
credit downgradeupgrade
Raise to higher standard
positive outlook · credit enhancement · stable outlook · deleveraging
credit, downgrade, credits, credited, crediting, creditor, creditors, creditable, accredit