credit rating agencies rogh

7/30/2019 Credit Rating Agencies Rogh

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CREDIT RATINGAGENCIES


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HISTORY

First credit ratingagency.

India was perhaps the

first amongst

developing countries to

set up a credit ratingagency in 1988.

Risks.


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WHAT IS CREDIT

RATING?


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DEFINITON

According toS&P According toMOODYS


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IMPORTANCE OF CREDIT

RATING To compare the loan on the basis

of quality of credit and loan.

Credit rating agencies also assistto portfolio monitoring.

Credit Rating Credit quality of

transparency.

Credit rating of money market

securities.


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BENEFITS OF CREDIT

RATING

TOINVESTORS TO

COMPANY


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FUNCTIONS OF CRA

PROVIDES EXAMINES

OFFERSERVICES

GRADATION


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CREDIT RATING PROCESS


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CREDIT RATING AGENCIES IN

INDIA

CRISIL ICRA

CARE DCR


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CRISIL

The first credit agency setup on January 1, 1988,jointly started by ICICI and UTIwith an equity capital

of Rs. 4 crores, as public Ltd company.

CRISIL is India's leading rating agency, and is the

fourth largest in the world.

With over a 60% share of the Indian Ratings market,

CRISIL Ratings is the agencyof choice for issuers and

investors. CRISIL inspires trust and confidence the world over.

It redefines industry standards constantly, and sets

new benchmarks year after year.


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CRISIL(Core Business)

Rating

Research

Capital markets

Infrastructure Advisory

CRISIL risk solutions


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ICRA

ICRA Limited (formerly Investment Informationand Credit Rating Agency of India Limited) wasset up in 1991 by leading financial/investmentinstitutions, commercial banks.

ICRA was set up by IFCI on 16th January 1991.

It is a public limited company with an authorizedshare capital of Rs.10crores, Rs. 5 crores is paid

up. ICRA is a Public Limited Company, with its shares

listed on the Bombay Stock Exchange and theNational Stock Exchange.


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RANGE OF SERVICES

Rating Services

Grading Services

Consulting Services


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CARE

CARE(credit analysis and researchlimited).

CARE Ratings commenced operations in

April 1993 and over nearly two decades,

it has established itself as the second-

largest credit rating agency in India. With

the rating volume of debt of around

Rs.33,062 bn (as on June 30, 2011).


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RATING METHODOLOGY

Business analysis

Financial analysis

Management evaluation

Fundamental analysis


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RATING SYMBOLS

High investment grades AAA & AA - Highest safety

A - Adequate safety

BBB - moderate safety

Speculative grades

BB - inadequate safety

B - high risk

C - substantial risk

D - default


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DCR

DCR(Duff and Phelps credit rating Indialimited).

It was founded in 1932 to provide high

quality investment research servicesfocused on the utility industry. Over the

decades, it evolved into a diversified

financial services firm that provides financialadvisory, investment banking, credit rating

and investment management services.


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SEBI ISSUED GUIDELINES TO

CRAs CRAs should maintain records of the rating

committee.

Information about the historical default rates of

their rating categories. CRAs should ensure that its analysts do not

participate in any kind of marketing and businessdevelopment.

CRAs while rating structured finance products,are barred from providing consultancy oradvisory services regarding the design of thestructured finance instrument.


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CONCLUSION

Credit rating is an input for decision making. A credit rating is not a recommendation to buy,

hold or sell a security. A rating is one of the inputsthat is used by investors to make an investment

decision. Investors expect higher returns for lower rated

instruments.

Rating agencies do not comment on the return

being offered on a security. Also, investors useseveral other factors like level of portfoliodiversification and liquidity levels of the securityetc. in making investment decisions.


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PRESENTED BY:-

MOHIT SHAH 45

VAIBHAV MEHTA 38

VISHAL JAIN 24

POOJA GOKANI 12

ARZOO SHAH 41

SEJAL ZAVERI 58


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Thank you

credit rating agencies rogh

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