A credit tenant is a tenant rated by an agency such as S&P or Moody’s, typically at investment grade.
Credit ratings help investors judge the likelihood that a tenant will keep paying rent. Rated tenants are usually large national companies, and an investment-grade rating (BBB- or higher from S&P) generally lowers the perceived risk and the cap rate. Not every strong NNN tenant is rated, however, and a rating belongs to a specific entity, which may not be the one that signed the lease. Confirm which entity is rated and who signed the lease and any guarantee.