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  • What Are Credit Rating Agencies?

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    Calvin S D'Souza
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    YProviding unbiased opinion yProviding quality and dependable information yProviding information at low cost yProviding basis for investment y Healthy discipline on corporate borrowers y Formation of public policy Receipt of the request Assignment of analytical team Obtaining information Rating committee meeting Presentation of findings Plant visits and meeting with management Communication of Decision Dissemination to the public Monitoring for possible change FIXED DEPOSITS FAAA FAA FA FB FC FD SHORT TERM INSTRUMENT BOND Fun

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    YProviding unbiased opinion yProviding quality and dependable information yProviding information at low cost yProviding basis for investment y Healthy discipline on corporate borrowers y Formation of public policy Receipt of the request Assignment of analytical team Obtaining information Rating committee meeting Presentation of findings Plant visits and meeting with management Communication of Decision Dissemination to the public Monitoring for possible change FIXED DEPOSITS FAAA FAA FA FB FC FD SHORT TERM INSTRUMENT BOND Fun

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    29 views11 pages

    What Are Credit Rating Agencies?

    Uploaded by

    Calvin S D'Souza
    YProviding unbiased opinion yProviding quality and dependable information yProviding information at low cost yProviding basis for investment y Healthy discipline on corporate borrowers y Formation of public policy Receipt of the request Assignment of analytical team Obtaining information Rating committee meeting Presentation of findings Plant visits and meeting with management Communication of Decision Dissemination to the public Monitoring for possible change FIXED DEPOSITS FAAA FAA FA FB FC FD SHORT TERM INSTRUMENT BOND Fun

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 11

    INTRODUCTION

    What are Credit Rating Agencies?

    What is CRISIL ?
    OBJECTIVES
    Provides unbiased opinion
    Provides quality and dependable
    information
    Provides information at low cost
    Provides easy to understand information
    Provide basis for investment
    Healthy discipline on corporate borrowers
    Formation of public policy
    CREDIT RATING PROCESS
    Receipt of Assignment of
    the request analytical team

    Plant visits and


    Obtaining
    meeting with
    management information

    Rating
    Presentation
    committee
    of findings meeting

    Dissemination Communicatio
    to the public n of Decision
    RATING METHODOLOGY
    Business Risk Analysis

    ●
    Industry risk
    ●
    Market position of the co.
    ●
    Operating efficiency
    ●
    Legal position
    ●
    Size of business

    Financial Analysis

    ●
    Accounting quality
    ●
    Earnings potential/profitability
    ●
    Cash flow analysis
    ●
    Financial flexibility
    Geographical Analysis

    ●
    Liquidity Management
    ●
    Asset quality
    ●
    Profitability and financial position
    ●
    Interest and tax sensitivity

    Management Analysis

    Regulatory and Competitive Environment

    Fundamental Analysis
    CRISIL’s Rating Symbols
    • DEBENTURES
    AAA

    AA

    BBB

    BB

    D
    •FIXED DEPOSITS
    FAAA

    FAA

    FA

    FB

    FC

    FD

    •SHORT TERM INSTRUMENT


    P-1

    P-2

    P-3

    P-4

    P-5
    •STRUCTURED OBLIGATIONS
    AAA (SO)

    AA (SO)

    A (SO)

    BBB (SO)

    BB (SO)

    B (SO)

    C(SO)

    D(SO)
    •BOND FUNDS
    AAAF

    AAF

    AF

    BBBF

    BBF

    CF

    •BANK LOAN RATINGS


    BLR-1

    BLR-2

    BLR-3

    BLR-4

    BLR-5

    BLR-6
    Company Industry Instrument Rating Outlook
    Name
    C I Ltd Other Cash Credit Limit BB+ Stable
    Export Packing
    BB+ Stable
    Credit
    Proposed Cash
    BB+ Stable
    Credit Limit
    Stand by Line of
    BB+ Stable
    Credit
    Bank Guarantee
    P4+
    limit
    C R Sons Construction Cash Credit Limit C
    Builders and
    Bank Guarantee
    Developers Pvt P4
    limit
    Ltd
    C Swaminatha Textile Products Long Term Bank BBB- Stable
    Mudaliar Sons & Loan
    Co. Bill Purchase P3
    Packing Credits P3
    C&E Ltd. Leather & Leather Cash Credit Limit BBB- Negative
    Products Stand by Line of
    BBB- Negative
    Credit
    ICRA Ltd.
    Long Mediu Short
    Term m Term Term
    ●LAAA
    ●LAA
    ●MAAA ●A1
    ●MAA
    ●LA+ ●A2
    ●LBBB+ ●MA
    ●A3
    ●LBB+ ●MB
    ●LB ●A4
    ●MC
    ●LC+

    ●LD ●MD ●A5

    •Care Ltd.
    •DCR Credit Rating

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