Which of the following best defines "credit rating"?

The definition of "credit rating" pertains specifically to the assessment of an entity's creditworthiness, typically conducted by credit rating agencies for borrowers such as corporations, governments, and sometimes individuals. This assessment evaluates the likelihood that the borrower will default on their debt obligations, thereby helping investors and lenders understand the risk associated with lending money or investing in those securities.

A credit rating simplifies investment decisions by providing a standardized measure of credit risk, which influences borrowing costs and investment strategies. The assessment takes into account various factors, including the borrower's past financial performance, current economic conditions, and the overall financial health of the entity being rated.

In contrast, other options provide definitions that do not accurately capture the essence of a credit rating. Consumer credit scores refer to individual creditworthiness, company stock prices pertain to equity valuations rather than credit assessments, and evaluations of operational strategies are unrelated to the assessment of credit risk. Thus, the assessment of borrower creditworthiness is the most precise and relevant definition in this context, making it the correct choice.