Creditworthiness therefore refers to the credit rating and solvency of a party and is often assessed by banks, lenders and other institutions in order to assess the risk of granting a loan. This is referred to as a credit score.

Creditworthiness is assessed on the basis of various factors such as credit history, income, assets, payment behaviour and other financial indicators.

By definition, a good credit rating means that the party is considered reliable and likely to be able to pay its debts on time.

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