What is Credit Risk? Explain the credit risk involved in Project Finance and Working Capital Finance. 

Credit risk refers to the possibility that a borrower may fail to repay a loan or meet other financial obligations, such as paying interest or principal on a debt. It is the risk that the lender or creditor will lose money or experience a reduction in the value of an asset as a result of a borrower's default or delinquency.

Credit risk arises from a variety of sources, including the borrower's financial condition, business or economic conditions, and changes in interest rates or other market conditions. Factors such as a borrower's credit history, income, debt-to-income ratio, and collateral also contribute to credit risk. In general, the higher the credit risk associated with a loan, the greater the interest rate that the lender _________ ________ _______ ______ _________ ___ _________.
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