Credit Downgrade
A credit downgrade refers to the reduction in the credit rating of a bond, which signifies increased perceived default risk.
Rating Actions and Notching terms for credit bureaus, reports, scores, scoring models, inquiries, freezes, monitoring, ratings, and rating actions.
Rating Actions and Notching terms explain credit files, credit bureaus, scoring models, inquiries, monitoring, freezes, rating agencies, grades, outlooks, and rating actions.
Use this branch when credit-file data, a score, a bureau record, an inquiry, a freeze, a rating, or a rating action changes approval, pricing, monitoring, or disclosure.
| Term | Use it for |
|---|---|
| Credit Downgrade | Credit report, score, bureau, inquiry, monitoring, freeze, rating agency, rating grade, or rating action term. |
| Credit Watch | Credit report, score, bureau, inquiry, monitoring, freeze, rating agency, rating grade, or rating action term. |
| Notching in Credit Rating Agencies | Credit report, score, bureau, inquiry, monitoring, freeze, rating agency, rating grade, or rating action term. |
Check the data provider, report date, scoring model, inquiry type, freeze status, rating scale, rating action date, coverage scope, and whether the signal is consumer, borrower, issuer, or security specific.
Credit scores and ratings are signals, not final advice or guarantees; decisions depend on lender policy, issuer facts, and applicable law.
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A credit downgrade refers to the reduction in the credit rating of a bond, which signifies increased perceived default risk.
Credit watch flags a rating under near-term review because new information could lead to an upgrade, downgrade, or confirmation.
Notching adjusts a rating up or down from an issuer rating based on priority, recovery prospects, structure, or support.