Professional Documents
Culture Documents
Objectives
It provides guidance to investors or creditors in determining a credit risk associated with debt instrument or credit obligation.
Establishes a link between risk and return. Helps investors in making investment decisions.
Rating Symbols
SYMBOLS
RATING METHODOLOGY
Business analysis - covers an analysis of industry risk, market position in the country, operating efficiency of the company & legal position.
Financial analysis analysis of accounting quality, earnings protection, cash flow adequacy & financial flexibility.
Management evaluation study of track record of the managements capacity to overcome adverse situations, goals, philosophy & strategies. Fundamental analysis analysis of liquidity management, asset quality, profitability & interest & tax sensitivity.
RESTRAINTS
Biased rating and misrepresentation,
References
http://crisil.com/index.jsp http://www.icra.in/ http://www.careratings.com/
Group Members
JEETENDRA. A PRIYA .A LEENA .L MANISHA .A NIRAJ.B TRIPTI.B MANSI.B