Evaluating the Creditworthiness of Financial Statements

Credit risk analysis is a very fundamental process in lending and finance. It is whereby, through the process, lenders will be in a position to analyze the probable chances that a borrower is likely to default on a loan obligation. Rating customers’ credit is cardinal to how a financial institution makes necessary lending decisions in safeguarding the loan portfolios against risks. analyzing the financial statements are among the tools used in analyzing credit risk.

Evaluating the Creditworthiness of Financial Statements