Credit ratings methodology
-
Upload
hitesh-kukreja -
Category
Economy & Finance
-
view
133 -
download
1
description
Transcript of Credit ratings methodology
![Page 1: Credit ratings methodology](https://reader037.fdocuments.in/reader037/viewer/2022102721/5461f9a4af79597f0b8b4e9b/html5/thumbnails/1.jpg)
Credit Ratings MethodologyCredit Ratings Methodology
![Page 2: Credit ratings methodology](https://reader037.fdocuments.in/reader037/viewer/2022102721/5461f9a4af79597f0b8b4e9b/html5/thumbnails/2.jpg)
Credit Ratings Methodology
Business Risk Profile
Analysis
FinancialRisk Profile
Analysis
![Page 3: Credit ratings methodology](https://reader037.fdocuments.in/reader037/viewer/2022102721/5461f9a4af79597f0b8b4e9b/html5/thumbnails/3.jpg)
Business Risk
Country Risk
Company Position
Industry Factors
Profitability / Peer GroupComparisons
• Political • Economic• Industry – Specific factors• Foreign exchange
• Industry Trends• Industry Structure• Market Size• Growth Potential• Cyclicality• Bases of Competition• Changing Technology• Operating Risk• Regulatory Environment
• Competitive Factors• Market position• Keys to Success• Size• Diversification• Management
• Validation of “Company Position”
• Trends• Quality of Earnings
& Analytical adjustments• Peer Group Comparisons
![Page 4: Credit ratings methodology](https://reader037.fdocuments.in/reader037/viewer/2022102721/5461f9a4af79597f0b8b4e9b/html5/thumbnails/4.jpg)
FinancialRisk
Accounting
Cash Flow Adequacy
Governance Risk
Liquidity / Short-term
Factors
• Accounting Regime • Reporting & Disclosure• Analytical adjustments
• Ownership• Board of directors• Management practices• Financial Strategy• Risk Tolerance• Accounting Practices• Internal controls
• Focus on debt service capability
• Analytical distinctions with profitability
• Cash flow measures / • ratios
• Operating sources & uses Of liquidity
• Other potential calls on Liquidity
• Debt Characteristics• Bank credit facilities
![Page 5: Credit ratings methodology](https://reader037.fdocuments.in/reader037/viewer/2022102721/5461f9a4af79597f0b8b4e9b/html5/thumbnails/5.jpg)
CRISIL(CREDIT RATING AND INFORMATION SERVICES OF INDIA LTD.)
A global analytical company Incorporated in year 1987 Provides ratings research and policy
advisory services So far crisil has 30000 debt instruments
covering the entire debt market
![Page 6: Credit ratings methodology](https://reader037.fdocuments.in/reader037/viewer/2022102721/5461f9a4af79597f0b8b4e9b/html5/thumbnails/6.jpg)
![Page 7: Credit ratings methodology](https://reader037.fdocuments.in/reader037/viewer/2022102721/5461f9a4af79597f0b8b4e9b/html5/thumbnails/7.jpg)