19

Credit Rating

Chapter Objectives

This chapter will enable you to develop an understanding of the following :

  1. Meaning of credit rating

  2. Importance of credit rating

  3. Origin of the concept of credit rating

  4. The growth of credit rating industry in India

  5. Rating methodology

  6. Credit rating agencies in India—CRISIL, ICRA, CARE, FITCH, and Brickwork Ratings.

INTRODUCTION

In the post-reforms era, with increased activity in the Indian financial sector both existing and new companies are opting for finance from the capital market. The competition among firms for a slice of the savings cake has increased. New instruments have been designed by companies to attract investors to subscribe to their issues. The market is flooded with a variety of new and ...

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