Business, Legal & Accounting Glossary
A measurement of a bond issuer’s ability to pay interest on the bond in a timely manner. The lower the credit quality of an issuer, the higher the risk that investors will not receive the stated interest rate, and the greater the risk of default on the principal. Credit quality is measured by a credit rating.
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This glossary post was last updated: 20th November, 2021 | 0 Views.