IMPAIRED CREDIT

Reduction of the creditworthiness of the individual or organization. It is normally reflected through a low credit rating of an individual, or deduction in the credit score designated to an organization by a rating agency or lender. In general, the borrower whose credit has been challenged will have lesser access to credit facilities and to pay a greater interest rate on loans. This credit may either be a temporary situation that can be flipped, or an early warning the borrower goes through a major financial crisis.