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Credit Rating
A credit rating is a quantified assessment of the creditworthiness of a borrower in general terms or with respect to a particular debt or financial obligation. A credit rating can be assigned to any entity that seeks to borrow money-an individual, corporation, state or provincial authority, or sovereign government.
Individual credit is scored from by credit bureaus such as Experian and TransUnion on a three-digit numerical scale using a form of Fair Isaac (FICO) credit scoring. Credit assessment and evaluation for companies and governments is generally done by a credit rating agency such as Standard & Poor’s (S&P), Moody’s, or Fitch. These rating agencies are paid by the entity that is seeking a credit rating for itself or for one of its debt issues.
- A credit rating is a quantified assessment of the creditworthiness of a borrower in general terms or with respect to a particular debt or financial obligation.
- A credit rating not only determines whether or not a borrower will be approved for a loan or debt issue but also determines the interest rate at which the loan will need to be repaid.
- A credit rating or score can be assigned to any entity that seeks to borrow money-an individual, corporation, state or provincial authority, or sovereign government. Individual credit is rated on a numeric scale based on the FICO calculation, bonds issued by businesses and governments are rated by credit agencies on a letter-based system.
Feasibility Study
A feasibility study is an analysis that takes all of a project’s relevant factors into account-including economic, technical, legal, and scheduling considerations-to ascertain the likelihood of completing the project successfully. Project managers use feasibility studies to discern the pros and cons of undertaking a project before they invest a lot of time and money into it.
Feasibility studies also can provide a company’s management with crucial information that could prevent the company from entering blindly into risky businesses.
- A feasibility study assesses the practicality of a proposed plan or project.
- A company may conduct a feasibility study if it’s considering launching a new business or adopting a new product line.
- It’s a good idea to have a contingency plan in case of unforeseeable circumstances, or if the original project is not feasible.
A feasibility study is simply an assessment of the practicality of a proposed plan or project. As the name implies, these studies ask: Is this project feasible? Do we have the people, tools, technology, and resources necessary for this project to succeed? Will the project get us the return on investment (ROI) that we need and expect?
The goals of feasibility studies are as follows:
- To understand thoroughly all aspects of a project, concept, or plan
- To become aware of any potential problems that could occur while implementing the project
- To determine if, after considering all significant factors, the project is viable-that is, worth undertaking
Feasibility studies are important to business development. They can allow a business to address where and how it will operate. They can also identify potential obstacles that may impede its operations and recognize the amount of funding it will need to get the business up and running. Feasibility studies aim for marketing strategies that could help convince investors or banks that investing in a particular project or business is a wise choice.
