What does creditworthiness mean?
its a measure of your credit worth. how much of a risk you are.
"n assessment of the likelihood that a borrower will default on their debt obligations. It is based upon factors, such as their history of repayment and their credit score. Lending institutions also consider the availability of assets and extent of liabilities to determine the probability of default." Investopedia
the credit quality can be measured by financial ratios such as current ratio, acid test ratio, debt to equity ratio and debt service ratios. Overall future outlook for the Company plays a role in this determination. Cash flows growth,demand for its products and the competitive advantage a Company has will increase credit quality of a Company. There are rating agencies such as S&P and Moodies.
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