Asset Quality Rating

Last Updated: Jun 6, 2019

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A borrower's Asset Quality Rating, or "AQR" is a BASEL risk rating used to estimated the expected loss, or potential losses associated with a particular loan extended to a borrower, and is a common measurement of credit risk.  An AQR is established by combining a borrower's BQR (borrower quality), and a credit facility's CQR (credit quality), and measures the overall Expected Loss of a loan given the probability of default and the loss given default.