'credit'

Question

Hi,Please have a look at this sentence:FOR decades America’s General Electric (GE) has worn its AAA credit rating as a badge of pride. How can I understand the word 'credit' here? Actually I'm having trouble with this word. I just can't learn its meanings... +_+

RayH · Accepted Answer

nessie000How can I understand the word 'credit' here?

I'm not sure why this is unclear: "Reputation for solvency and integrity entitling a person [or company] to be trusted in buying or borrowing."

Nessie000 · Answer

Oh my ***! How silly I am. Sorry, RayH, but these days I'm a bit 'haunted' by business English. You know, when coming across a new word, I always think of its business meaning first, which made me forget the simplest meaning of the word 'credit' <img src="http://www.EnglishForward.com/emoticons/emotion-83.gif"/>

CalifJim · Answer

You are interested not so much in the meaning of credit, but in the meaning of the entire expression credit rating.

The following is from http://en.wikipedia.org/wiki/Credit_rating , which see.

A credit rating assesses the credit worthiness of an individual, corporation, or even a country. It is an evaluation made by credit bureaus of a borrower’s overall credit history.

Credit ratings are calculated from financial history and current assets and liabilities. Typically, a credit rating tells a lender or investor the probability of the subject being able to pay back a loan. However, in recent years, credit ratings have also been used to adjust insurance premiums, determine employment eligibility, and establish the amount of a utility or leasing deposit.

A poor credit rating indicates a high risk of defaulting on a loan, and thus leads to high interest rates, or the refusal of a loan by the creditor.

CJ

'credit'

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