# Credit Enhancement

**IRI:** https://folio.openlegalstandard.org/R9zy04O1ktopmeDKdmRvLpY

## Labels

## Definition

Credit Enhancement refers to strategies employed to improve the credit risk profile of a financial transaction or asset, thereby increasing its credit rating and reducing the risk to investors. Techniques include guarantees, insurance, reserve funds, and collateralization to protect against potential losses.

## Sub Class Of

- https://folio.openlegalstandard.org/RfuC0yNDKhOWj8FHvjuYyg

**Deprecated:** False