Credit rating
Credit ratings are established and monitored by rating agencies (i.e. Standard & Poors), which consider a variety of factors to determine a company's health, financial stability and its investment value. Ratings are a measure of risk—an assessment of a company's ability and willingness to repay loans in full and on time. The higher the credit rating, the higher the level of confidence in repayment—and the lower the borrowing interest rate the company has to pay on a loan.