credit rating: meaning, definition, pronunciation and examples

They are closely related but not identical. A 'credit score' (like a FICO score) is a numerical value primarily for individuals, derived from their credit report. A 'credit rating' is a broader term often expressed as a letter grade (e.g., AAA, BB) used for companies, governments, and financial instruments, assigned by agencies like S&P.

Specialized companies known as credit rating agencies, such as Standard & Poor's (S&P), Moody's, and Fitch Ratings. For personal credit, scores are calculated by companies like Fair Isaac Corporation (FICO) or the credit bureaus themselves.

In some countries and for certain roles (especially in finance or positions handling money), employers may check an applicant's credit report as part of a background check, but they typically see a modified version, not your actual score. A very poor credit history could negatively influence their decision.

For major agencies like S&P and Fitch, the highest long-term issuer credit rating is 'AAA'. For Moody's, it is 'Aaa'. For personal FICO scores in the US, the range is 300-850, with 800+ considered exceptional.

A formal assessment of an individual's or a company's ability to repay borrowed money, performed by a specialized agency.

Credit rating is usually formal, technical, business/finance in register.

Credit rating: in British English it is pronounced /ˈkred.ɪt ˌreɪ.tɪŋ/, and in American English it is pronounced /ˈkred.ɪt ˌreɪ.t̬ɪŋ/. Tap the audio buttons above to hear it.