credit watch investment & finance definition
list that is used by ratings agencies to signal that they may downgrade a
company’s credit rating because of a declining business environment
characterized by declining sales, pressure on profits, or extreme competition.
Just because a company is placed on a credit watch list by Standard &
Poor’s, Moody’s Investors’ Service, or Fitch Ratings doesn’t necessarily mean
that the company will be eventually downgraded.
See credit watch in Wall Street Words
The reevaluation of the credit quality of a firm's debt obligations by a rating agency. Being the object of a credit watch generally indicates the credit quality of a firm's debt has deteriorated and may be downgraded.
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