credit risk

American  

noun

1. the possibility of loss if a borrower defaults on a loan.

2. a borrower regarded as likely to default on a loan.

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Example Sentences

He claims that Deutsche Bank misused “netting” practices that allow banks to offset credit risk exposure, thereby inflating the bank’s capital and leverage ratios.

From MarketWatch

Wall Street expects Oracle to borrow more debt in the future, thus increasing its credit risk.

From Barron's

The company’s credit risk exploded in October, driven by concerns about its ability to finance its capex needs in the face of insufficient cash flow generation.

From Barron's

Although it doesn’t have the clout of the United States, it’s not surprising that Germany is deemed a better credit risk.

From New York Times

"For the highest-risk banks, it consistently selected requirements at the bottom of the pre-defined ranges," the report said, adding that it saw a pattern of the ECB failing to sufficiently escalate supervisory measures when credit risk was high and sustained.

From Reuters