Okuzeka
Finance & Banking vocabulary · Risk Management

Credit migration

Meaning in finance & banking, with examples

nounAdvanced term

In finance & banking, credit migration means: Movement of a borrower or exposure between credit-quality grades over time.

In Turkish: kredi notu geçişi

How it is used

Use for upgrades and downgrades as well as movement toward default.

Example sentences

  1. The credit migration table showed more borrowers moving into weaker grades.

    Changes in grade reveal deterioration before every borrower defaults.

  2. The bank used credit migration assumptions in its portfolio stress model.

    The model projects how credit quality may change over time.

Common collocations

  • credit migration matrix
  • credit migration analysis
  • credit ratingAn assessment, usually by a rating agency, of how likely a company, bank or country is to repay its debt, shown with letters such as AAA or BB.
  • credit riskThe risk that a borrower or another party will not pay back money it owes on time or in full, causing a loss for the lender.

More terms: Risk Management

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This page explains English vocabulary for learners. It is not financial advice.