Credit risk is the risk of default on a debt that may arise from a borrower failing to make required payments. In the first resort, the risk is that of the lender and includes lost principal and interest, disruption to cash flows, and increased collection costs. The loss may be complete or partial.
Last Friday (Aug. 14), Chinese Internet conglomerate Tencent revealed that it would be launching a credit rating service and using social media sites to make...
