Scribd Logo
Upload

Welcome to Scribd!

  • 45 views

    Presantation in Fms (Credit Rating) : Mukesh (5025) Ved Prakash Shashikanth Sandhya (5152) Supriyo

    Uploaded by

    Vedprakash Mishra
    Credit ratings are assessments of creditworthiness that indicate the probability that a borrower will pay back debt. They are based on financial history and assets/liabilities. A poor credit rating signals high default risk and leads to higher interest rates due to the increased lending risk. Credit ratings are issued by independent agencies and help lenders and investors evaluate risk.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd

    Presantation in Fms (Credit Rating) : Mukesh (5025) Ved Prakash Shashikanth Sandhya (5152) Supriyo

    Uploaded by

    Vedprakash Mishra
    45 views11 pages
    Credit ratings are assessments of creditworthiness that indicate the probability that a borrower will pay back debt. They are based on financial history and assets/liabilities. A poor credit rating signals high default risk and leads to higher interest rates due to the increased lending risk. Credit ratings are issued by independent agencies and help lenders and investors evaluate risk.

    Original Title

    Presentation 1

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Credit ratings are assessments of creditworthiness that indicate the probability that a borrower will pay back debt. They are based on financial history and assets/liabilities. A poor credit rating signals high default risk and leads to higher interest rates due to the increased lending risk. Credit ratings are issued by independent agencies and help lenders and investors evaluate risk.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    45 views11 pages

    Presantation in Fms (Credit Rating) : Mukesh (5025) Ved Prakash Shashikanth Sandhya (5152) Supriyo

    Uploaded by

    Vedprakash Mishra
    Credit ratings are assessments of creditworthiness that indicate the probability that a borrower will pay back debt. They are based on financial history and assets/liabilities. A poor credit rating signals high default risk and leads to higher interest rates due to the increased lending risk. Credit ratings are issued by independent agencies and help lenders and investors evaluate risk.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 11

    PRESANTATION IN FMS (CREDIT

    RATING)
    Mukesh(5025)
    Ved prakash
    Shashikanth
    Sandhya(5152)
    Supriyo
    • A credit rating assess the credit worthiness of an
    individual, corporation, or even a country. Credit
    rating are calculated from financial history and current
    assets and liabilities.
    • A credit rating tells a lender or investor the probability
    of the subject being able to pay back a loan

    • A poor credit rating indicates a high risk of defaulting


    on a loan, and thus leads to high interest rates.
    Introduction to credit rating
    • An assessment of 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.
    • Credit is important since individuals and
    corporations with poor credit will have
    difficulty finding financing, and will most likely
    have to pay more due to the risk of default.
    • Moody's’: ‘rating are designed exclusively for
    the purpose of grading bonds according to
    their investments qualities”.
    • Australian ratings: a corporate credit rating
    provides lenders with a simple system of
    gradation by which the relative capacities of
    companies to male timely repayment of
    interest and principal on a particular type of
    debt can be noted”
    • Credit rating is an assessment of the capacity of the issuer of
    debt security by an independent agency, to pay interest and
    repay principal as per the terms of issue of debt.
    • The ratings are expressed in code numbers which can be
    easily comprehended by the lay investors.
    • Credit rating, as exists in India, is done for a specific security
    and not for a company as a whole.
    • A debt rating is not one time evaluation of credit risk, which
    can be regarded as valid for the entire life of the security.
    • a credit rating does not create fiduciary relationship between
    the agency and the users.
    Benefits of credit rating
    • Low cost information
    • Quick investment decision
    • Independent investment decision
    • Investor protection
    Benefits to rated companies
    • Sources of additional certification.
    • Increase the investor population
    • Forewarns risk
    • Encourages financial discipline
    • Merchant bankers job made easy
    • Foreign collaborations made easy.
    • Benefits the industry as a whole
    • Low cost of borrowing
    • Rating as a marketing tool
    Credit rating agencies in India
    • Credit rating information services
    limited(CRISIL)
    • Investment information and credit rating
    agency of India(ICRA).
    • Credit analysis and research (CARE)
    • Duff Phelps credit rating pvt.ltd.(DCRindia)
    Credit rating information services ltd.
    • The first credit agency floated on january 1, 1988. it was jointly
    started by ICICI and UTI with an equity capital of 4 crores.
    • CRISIL is India's leading rating agency and is the fourth largest in
    the world.
    • With over a60% share of the Indian rating market, CRISIL rating
    is the agency of choice for issuers and investors.
    • CRISIL rating is a full service rating agency that offers a
    comprehensive range of rating services. CRISIL ratings provides
    that most reliable opinions on risk by combining its
    understanding of risk and the science of building risk
    frameworks with a contextual understanding of business.
    Credit rating information system
    • The principle objective of CRISIL is to rate the debt organizations
    of Indian companies. Its rating guides the investors about the
    risk of timely payment of interest and principal on particular
    debt instruments.
    • CRISIL’s rating process and rating committee are designed to
    ensure that all assigned ratings are based on the highest
    standards of independence and analytical rigor.
    • The rating committee comprises members who have the
    professional competence to meaningfully assess the credit
    analysis that underlines the rating, and have no interest in the
    entity being rated. A-team of analysts carries out the credit
    analysis.
    Debenture rating symbols
    • High investment grades:
    • AAA(TRIPLE A): HIGHEST SAFETY
    • AA(DOUBLE A): HIGH SAFETY
    • INVESTMENT GRADES:
    • A: ADEQUATE SAFETY
    • BBB(TRIPLE B): MODERATE SAFETY
    • SPECULATIVE GRADES:
    • BB: INADEQUATE SAFETY B: HIGH RISK
    • C: SUBSTANTIAL RISK D: DEFAULT

    You might also like

    pFad - Phonifier reborn

    Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

    Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


    Alternative Proxies:

    Alternative Proxy

    pFad Proxy

    pFad v3 Proxy

    pFad v4 Proxy