International Research Journal of Education and Technology

The term credit rating refers to a quantified assessment of a borrower's creditworthiness in general  terms or with respect to a particular debt or financial obligation. A credit rating can beassigned to any entity that seeks to borrow money—an individual, a corporation, a state or provincial authority, or a sovereign government. A credit rating is an evaluation of the credit risk of a prospective debtor  (an individual, a business, company or a government), predicting their ability to pay back the debt, and an implicit forecast of the likelihood of the debtor defaulting.