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English definition of “credit risk”

credit risk

noun
 
 
FINANCE
[C or U] the degree to which it is possible that a person, company, or government will not be able to pay back borrowed money: Race, gender, and religion will not be considered in assessing credit risk.high/increased/low credit risk Analysts say 30% of the bank's loans have a high credit risk.
[C] a person, company, or government considered according to how likely they are to pay back borrowed money: bad/good/poor credit risk Lenders say that women are good credit risks, and are often better at budgeting.
[C] a person, company, or government that is unlikely to pay back borrowed money: Four years ago, I was refused a store card because I was considered a credit risk.
(Definition of credit risk from the Cambridge Business English Dictionary © Cambridge University Press)
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