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.