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

CRISIL
CARE
ICRA
FITCH RATING INDIA
ONICRA
RATING PROCESS OF CRISIL
 METHODOLOGY FOR RATING CREDIT

BUSINESS RISK

FINANCIAL RISK

MANAGEMENT EVALUATION

BUSINESS ENVIROMENT ANALYSIS

 CREDIT RATING SYMBOLS
CRISIL-
AAA : Highest Safety
AA : High Safety
A : Adequate Safety
BBB : Moderate Safety
BB : Inadequate Safety
B : High Risk
C : Substantial Risk
D : Default
NM : Not Meaningful
 PRIMARY DATA
BRICKWORK 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:
Investor
Issuer
Financial Intermediaries
Business Counter-parties
Regulators
 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)