credit tenant

Definition

A tenant with the size and financial strength worthy enough of being rated as an investment grade by one of three major credit agencies: Fitch, Moody's, or Standard & Poor's. An investment grade rating is seen as a good sign that the tenant will be able to pay rent, even in economic downturns or specific market slumps.

Use credit tenant in a sentence

He was a good credit tenant and was very worthy and we all took note of that in what we were doing.

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You should try and make sure that you trust any credit tenant that you will do any deals with in the future.

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I own a real estate investment trust that owns commercial buildings, and I have had great success with a policy that will only lease a property to a company if it is a credit tenant.

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