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Ratings, Rating Agencies and rating concept which have been establish features of the developed economic are now common in other emerging market economics.

Credit rating is a widely talk about subject in

financial sector.

An assessment of the credit worthiness of a borrower in general terms or with respect to a particular debt or financial obligation. A credit rating can be assigned to any entity that seeks to borrow money an individual, corporation, state or provincial authority,

or sovereign government

Credit rating is essentially a symbolic indicator of the relative grading of the investment/credit qualities of financial instruments and reflects the relative ability of the issuers of such instruments to meet the servicing

obligations as and when they arise.

In other words, credit rating provides simple system of gradation by which the relative capacities of companies (borrowers) to make timely repayment of interest and principal on a particular type of debt can be noted.

Rating services is 150 -year-old industry in the US. There are 3 Credit rating agencies in the US. Moodys S&p Fitch

In India, Credit rating is currently a 20-yearold industry. We have 4 leading rating agencies CRISIL Investment Information

ICRA (Credit Rating Agency Of India Ltd)

CARE ( Credit Analysis & Research Ltd)

Product portfolio of ICRA Ltd

Credit rating services
corporate debt rating Financial sector rating Issuer rating Bank line of Credit rating Corporate government rating Public finance rating Structured finance rating Mutual fund rating Infrastructure rating Insurance sector rating Project rating

Product portfolio of ICRA Ltd

Grading services
IPO Grading Construction companies

Real estate project

Maritime institutes Health care services Microfinance institutions


Credit rating is an opinion on the credit quality of a debt instrument offer by a Credit rating company. It is a

symbolic of current opinion of rating agency regarding the

capability of a issuer of debt obligation in future as per the

term of the contract. Credit rating is not only to be considered as the rating of the issuer. Issue rating is different from the issuer rating.

Expression of opinion credit Risk Symbols Instrument specific Difference in the rating

Investment recommendation
Rating may be revised