IMPORTANCE OF CREDIT RATING IN INDIA

What is Credit Rating?

A credit rating assesses the credit worthiness of an individual, corporation, or even a country. Credit ratings are calculated from financial history and current assets and liabilities.

Credit rating agencies gives the ratings.

Importance of Credit rating in India

establish a link between risk and return

to investors in making investment decisions

Credit rating shows the exact worth of the organization

Credit Rating Agencies in India

CRISILCARE ICRAFITCH RATING INDIAONICRA

RATING PROCESS OF CRISIL

METHODOLOGY FOR RATING CREDIT

BUSINESS RISK

FINANCIAL RISK

MANAGEMENT EVALUATION

BUSINESS ENVIROMENT ANALYSIS

CREDIT RATING SYMBOLSCRISIL-

AAA : Highest Safety

AA : High SafetyA : Adequate SafetyBBB : Moderate SafetyBB : Inadequate SafetyB : High RiskC : Substantial Risk D : DefaultNM : Not Meaningful

PRIMARY DATABRICKWORK CREDIT RATING

AGENCY

BRICKWORK CREDIT RATING SYMBOLS

FINDINGS

Ratings are not a guarantee against loss.Credit ratings are assigned to companies

through Credit rating agency.The rating given by the agency is very

important for:InvestorIssuerFinancial IntermediariesBusiness Counter-partiesRegulators

FINDINGS Cont……

These days people refers to 3 different credit ratings agencies in order to make correct decision of investment.

Issuer can Appeal to the credit rating agency if they would not satisfy with the ratings

CONCLUSION

Presented By:Elison Masih (16)Vishal Gandhi (17)Garima Doshi (18)Jay Patadia (19)Kapil Sharma (20)