credit risk
Americannoun
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the possibility of loss if a borrower defaults on a loan.
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a borrower regarded as likely to default on a loan.
Example Sentences
Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.
Asset quality should be supported by low nonperforming loans and fewer loans showing signs of heightened credit risk, it says.
From The Wall Street Journal ● Aug. 6, 2026
While the ratings agency is maintaining its “A-” financial strength and credit ratings of Delaware Life, it reduced its outlook to “negative” because of possible higher credit risk following changes to the insurer’s portfolio.
From Los Angeles Times ● Jul. 28, 2026
The backing by Nvidia would enable SoftBank to raise debt on more favorable terms, the Journal noted, which would otherwise be challenging given how S&P Global has flagged OpenAI as a key credit risk.
From MarketWatch ● Jul. 27, 2026
The bulk of mortgage securities are issued by Fannie Mae and Freddie Mac, which are quasi-government entities whose bonds carry little credit risk.
From Barron's ● Jun. 26, 2026
Stage One was to apply a formula that had been dreamed up to cope with corporate credit risk to consumer credit risk.
From "The Big Short" by Michael Lewis
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Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023
Idioms from The American Heritage® Idioms Dictionary copyright © 2002, 2001, 1995 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company.