This document discusses some practical issues in assessing corporate credit risk. It notes that some common assumptions made by inexperienced lenders, such as that financial statements are always reliable, are not always realistic. It then provides some examples to demonstrate how to overcome these issues, such as having a more flexible definition of default that accounts for situations where borrowers exhibit financial weaknesses before a missed payment. The document also discusses domestic credit rating agencies and their role in providing credit ratings, especially in developing countries.