While there is no universal definition, it is often identified with characteristics that include borrowers with low credit scores and poor payment histories.
"The highest risk would apply to those borrowers with additional risk characteristics such as poor payment history, high loan-to-value or interest-only features," Moody's said.
Analysts say the cuts have mostly come in regions where real estate values have dropped, but people with poor payment histories can also be affected.
Several Gulf oil producers are more recent entrants to this group, reflecting the positive impact of the oil bonanza on growth, public finances and their external accounts.The worst rated countries are dragged down by poor payment records, institutional failings and, in some cases (such as Iraq and Sudan) by civil violence.
FICO also doesn't take into account relevant factors such as income or bills, and in some cases only reflects poor payment history and not on-time payments.
During the late 1970s and the early 1980s of the last century, the market changed as a result of the shift from public sector customers to private customers with poor payment practices, and a sink in the average quantity of orders.
Even India – depending where you place your "Asian" frontier – has poor infrastructure, low GDP/capita, numerous languages and poor payment systems, which make it unattractive for app developers to localize fully.
In the first phase of data collection, SME owners mentioned several reasons for not giving loan by formal FIs - lack of sound financial statement, sector biases of FIs, lack of proper collateral, poor payment history, risks in business, and lack of personal guarantor.
Some consumers have seen their credit limits reduced because they shopped at stores frequented by cardholders with poor payment histories.
If you decide to work with someone with a poor payment history, you can rest assured that your payments will be consistently late, meaning your cash flow will suffer.
Besides time restraints and poor payment, possible other reasons for insufficient information transfer at the GP level in Germany should be investigated more thoroughly.
