mfs credit rating grp4

8/11/2019 MFS Credit Rating Grp4

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Group 4AswathAswathyKanchanPranav

Shipra



Top Credit Rating Agencies in India

•Crisil Limited•Credit Information Bureau IndiaLimited(CIBIL)

•Fitch Ratings India Private Ltd.

•!uifa"

•Credit Anal#sis $ Research Ltd. (CAR)

•ICRA Limited

•%&ICRA•'igh ar Credit Information *ervices

•* Rating Agenc# of India Ltd. (*RA)

•Bric+or Ratings India Private Ltd



I'PORTANCE OF CREDIT RATING

AGENCIES*ENDER%IN+ESTOR,S PERSPECTI+E Provi!s Sup!rior In#or)ation an r!uc!s

in#or)ation asy))!try

In#or)! D!cision-)a(in" .asis #or Ris( an R!turn

.ORRO/ER%CO'PAN0 PERSPECTI+E

.!tt!r I)a"! an +isi&i$ity o# .orrow!rGr!at!r Acc!ss to Funs

*ow!r Cost o# .orrowin"

'ar(!tin" Too$



Cr!it Ratin" Proc!ss



T#pe *afet# ,escription

AAA 1i"h!st Sa#!ty Instru)!nts with this ratin" ar! consi!r! tohav! th! hi"h!st !"r!! o# sa#!ty r!"arin"ti)!$y s!rvicin" o# 2nancia$ o&$i"ations3 Suchinstru)!nts carry $ow!st cr!it ris(

AA 1i"h Sa#!ty Instru)!nts with this ratin" ar! consi!r! tohav! hi"h !"r!! o# sa#!ty r!"arin" ti)!$ys!rvicin" o# 2nancia$ o&$i"ations3 Suchinstru)!nts carry v!ry $ow cr!it ris(3

A A!uat!

Sa#!ty

Instru)!nts with this ratin" ar! consi!r! to

hav! a!uat! !"r!! o# sa#!ty r!"arin"ti)!$y s!rvicin" o# 2nancia$ o&$i"ations3 Suchinstru)!nts carry $ow cr!it ris(3

... 'o!rat!Sa#!ty

Instru)!nts with this ratin" ar! consi!r! tohav! )o!rat! !"r!! o# sa#!ty r!"arin"ti)!$y s!rvicin" o# 2nancia$ o&$i"ations3 Suchinstru)!nts carry )o!rat! cr!it ris(3

.. 'o!rat!Ris(

Instru)!nts with this ratin" ar! consi!r! tohav! )o!rat! ris( o# !#au$t r!"arin" ti)!$ys!rvicin" o# 2nancia$ o&$i"ations

. 1i"h Ris( Instru)!nts with this ratin" ar! consi!r! to

hav! hi"h ris( o# !#au$t r!"arin" ti)!$ys!rvicin o# 2nancia$ o&$i ations3



T#pe *afet# ,escription

C +!ry 1i"h Ris( Instru)!nts with this ratin" ar!consi!r! to hav! v!ry hi"h ris( o#!#au$t r!"arin" ti)!$y s!rvicin" o#

2nancia$ o&$i"ations3D D!#au$t Instru)!nts with this ratin" ar! in !#au$t

or ar! !5p!ct! to &! in !#au$t soon3



Ratin" Factors.usin!ss Ris( Ana$ysis

Financia$ Ana$ysis

'ana"!)!nt Eva$uation

G!o"raphica$ Ana$ysis

R!"u$atory an Co)p!titiv! Environ)!nt

Funa)!nta$ Ana$ysis



Ratin" Factors.an(in" S!ctor6

CRA'E* 'ODE*i3 C- Capita$ A!uacy

ii3 R- R!sourc! Raisin" an A&i$ity

iii3 A- Ass!t 7ua$ity

iv3 '- 'ana"!)!nt o# Syst!)s Eva$uation

v3 E- Earnin" Pot!ntia$

vi3 *- *iuiity%Ass!t $ia&i$ity )ana"!)!nt



.!n!2ts to Inv!storsFaci$itat!s co)parativ! ass!ss)!nt o#

inv!st)!nt options8 as ratin"s ar! !si"n! to&! co)para&$! across issu!rs in i9!r!nt&usin!ss!s

Co)p$!)!nts inv!stors: own cr!it ana$ysis

Faci$itat!s ass!t )onitorin"8 as ratin"s ar!

(!pt un!r r!vi!w unti$ th! rat! instru)!nt isr!pai



Co)parison o# CI.I* with oth!rCr!it Ratin" a"!nci!s=3CI.I*

Pro)ot!rs

Ratin" '!tho > Sca$in"

Us!rs ar! &an(s8 FIs8 !tc

Consu)!r so$utions8co)pany so$utions anana$ytics an !cision)a(in"3

ICRA an CRISI*Pro)ot!rs

Ratin" '!tho > Sca$in"Us!rs ar! inv!stors8

pro<!cts8 !tc3

ICRA provi! s!rvic!s $i(!In#or)ation s!rvic!s8

Grain" S!rvic!s8 Ratin"S!rvic!s8 Avisory S!rvic!s8'utua$ Fun Ratin"s8 !tc3An CRISI* provi!s Cr!itRatin"8 Avisory S!rvic!s8

CRISI*3co)8 Cr!i&i$ity-First8!tc3

mfs credit rating grp4

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