Creditworthiness therefore forms a central cog in the wheel of the financial system, having a bearing on issues such as credit extensions and borrowing costs. It is evaluated by credit reports and credit ratings that are issued by the credit rating agencies. For instance, credit rating agencies use these assessments to measure credit risk and financial stability of companies, governments, and agencies that issue bonds and shares. Financial experts and business coaches stress the following challenges and criticisms, emphasizing the need for accountability and transparency of credit rating agencies. It is possible to contribute to the development of improved credit sustainability with the help of this concept, which will make the decision-making process better for borrowers and lenders and therefore strengthen the financial system in general.
