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A credit score is a numerical representation of a borrower's creditworthiness. Banks and financial institutions use credit scores to evaluate the probability of a borrower repaying loans. A high credit score can lead to better interest rates and loan conditions.

A credit rating assesses the credit risk of a prospective debtor, predicting their ability to pay back the debt and an implicit forecast of the likelihood of the debtor defaulting. It is often issued by credit rating agencies like Moody's and Standard & Poor's.

Debt-to-Income Ratio (DTI) is an individual's monthly debt payment divided by their gross monthly income. It's used by lenders to gauge a borrower's ability to manage monthly payments and repay debts.

Debt-to-Equity Ratio (D/E) is a measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity. It indicates the proportion of equity and debt used to finance a company's assets.

Interest Coverage Ratio (ICR) is used to determine how easily a company can pay its interest expenses on outstanding debt. It's calculated by dividing a company's earnings before interest and taxes (EBIT) by the interest expenses for the same period.

Credit Utilization Ratio compares the total amount of credit a borrower is using to the total amount of credit available to them. It affects their credit score, with lower utilization being generally better for the score.

Payment history is a record of a borrower's past payments on all debts. It is the most significant factor in determining a credit score, revealing if payments were made on time, late, or missed entirely.

Credit History Length is the duration of time since a borrower's oldest credit account was opened. A longer credit history can contribute positively to a credit score, assuming the history demonstrates responsible credit use.

Types of Credit Used refers to the mix of accounts a borrower has, such as credit cards, installment loans, mortgage loans, etc. A diverse credit mix can have a minor positive impact on a credit score.

New Credit Inquiries indicate how often a borrower has applied for new credit, which can be a sign of elevated risk if done frequently in a short time. This can temporarily lower a credit score.

Credit Default Swaps (CDS) are financial derivative contracts that allow an investor to 'swap' or offset their credit risk with that of another investor. They are used for hedging or speculation on a borrower's creditworthiness.

Bankruptcy risk assesses the likelihood that a company will be unable to meet its debt obligations and thus resort to declaring bankruptcy. This is an important aspect to consider in credit analysis.

Loan covenants are terms agreed upon by the lender and borrower, setting specific conditions or actions that the borrower must follow or avoid. They are designed to protect the creditor's interests by ensuring the borrower's creditworthiness is maintained.

Working Capital is the difference between a company's current assets and current liabilities. It is a measure of a company's operational efficiency and its short-term financial health.

Liquidity ratios, including the current ratio and quick ratio, measure a company's ability to pay off its short-term liabilities with its short-term assets. This is critical for credit analysis as it indicates financial stability.

Profitability ratios, such as net profit margin, return on assets (ROA), and return on equity (ROE), evaluate a company's ability to generate earnings relative to its revenue, assets, and equity. They show the company's efficiency in utilizing its resources.

Leverage ratios, like the debt-to-equity ratio mentioned earlier, provide insight into the level of a company's debt compared to its equity. They indicate a company's ability to satisfy its financial obligations with its own resources.

Cash Flow Analysis examines the cash inflows and outflows of a company over a period of time. It helps creditors determine the borrower's ability to generate cash necessary to pay back debts.

Economic conditions, including interest rates, inflation, and economic growth, can significantly impact a company's financial health and consequently its creditworthiness.

Industry risk evaluates the inherent risk associated with the industry in which a company operates. It can include factors like competitive intensity, regulatory environment, and market volatility.

Collateral refers to the assets a borrower offers to a lender as security for a loan. Should the borrower default, the lender may seize the collateral to recoup losses, which makes secured loans less risky for creditors.

Guarantors are individuals or entities that agree to take on the responsibility of paying back a loan if the primary borrower defaults. They provide additional security and confidence to the lender.

Management quality involves evaluating the effectiveness of a company's leadership. Skilled and experienced managers can navigate financial challenges better, translate to reduced credit risk.

The size of a company can influence its borrowing conditions. Larger companies often have more diversified revenue streams and resources, leading to potentially lower credit risk and better borrowing terms.