Dictionary of Banking Terms: impaired credit
impaired credit
bank loan where full repayment is considered uncertain. An impaired credit is classified as a doubtful loan, substandard, or loss, depending on the severity of the impairment.
Dictionary of Finance and Investment Terms: impaired credit
impaired credit
deterioration in the credit rating of a borrower, which may result in a reduction in the amount of credit made available by lenders. For example, a company may launch a product line that is a failure, and the resulting losses will seriously weaken the company's finances. Concerned lenders may reduce the firm's credit lines as a result. The same process can apply to an individual who has been late paying bills, or in an extreme case, has filed for bankruptcy protection. Also called adverse credit.
