INTRODUCTION Defination- An assessment of the credit worthiness of individuals and corporations. It is based upon the history of borrowing and repayment, as well as the availability of assets and extent of liabilities Defination- Credit Rating is the symbolic indication of the current opinion regarding the relative capability of a corporate entity to service its debt obligations in time with reference to the instrument being rated.

Development of Financial Mar Standardization of the Evaluation Process Importance of credit rating Development of Financial Mar Standardization of the Evaluation Process Help Regulate Financial Markets Enhanced Transparency in the Credit Markets Estimation of Risk Premiums

Benefits of Credit Rating to Investors& Company. Helps in Investment Decsion . Benefits of Rating Rviews . Assurance of Safety . Easy Understandability of Investment Proposal. Choice of Instruments    Improves Corporate Image . Lowers Cost of Borrowing . Wider Audience for Borrowing . Helps in Growth and Expansion . Good for Non-Popular Companies 

Funtions of credit rating 1.Rating Public Entities - is to evaluate public entities for credit worthiness. 2.Investment Advice- evaluate the financial instruments offered by different groups. 3.Consumer Credit Agency- create consumer credit ratings.

credit rating agencies in Market 1.Credit Rating Information of India ltd(CRISIL) –Standard &Poors . 2.Investment Information and Credit rating Agency of India (ICRA). 3.Credit Analysis &Research Limited (CARE). 4.Duff&Phelps Credit Rating India Private ltd. ( DCR India) 5.ONICRA Credit Rating Agency of India ltd.

IN 1987 CRISIL Was Incorporated IN 1987 CRISIL Was Incorporated. CRISIL is acronym for Credit Rating Information Services of India Limited. CRISIL Not oniy is India's leading Ratings, Financial News, Risk and Policy Advisory company but also world’s first Regional company. 15,000 large and mid-corporates and financial institutions, and 31,000 small and medium enterprises across 190 industry sectors & 30,000 debt instruments. Our ratings cover manufacturing companies, banks, nonbanking finance companies, public sector undertakings, financial institutions, state governments, urban local bodies, mutual funds.

Rating Awarded by CRISIL AAA -: Highest Safety AA -: Higher Safety A -: Adequate Safety BBB -: Moderate Safety BB -: Sub- Modreate safety B -: Inadequate Safety C -: Substantial Risk D -: default Risk.  Rating scales- Rating scale for Long-Term Instrument Rating scale for Short-Term Instruments Rating scale for corporate-Term Instruments Rating scale for Short Term Structured Finance Instruments Rating scale for Scale For Fixed Deposits Instrument

Investment and Risk Management Services functions of CRISIL Advisory Investment and Risk Management Services Research - CRISIL Ratings -critical role in the development of the debt markets in India

Conclusion A credit rating is a useful tool not only for the investor , but also for the entities looking for investors. An investment grade rating can put a security, company or country on the global radar, attracting foreign money and boosting a nation's economy. Indeed, for emerging market economies, the credit rating is key to showing their worthiness of money from foreign investors.

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