Credit rating, Financial Management

Assignment Help:

As the number of companies borrowing directly from the capital market increases, and as the industrial environment becomes more and more competitive and demanding, investors find that a borrower's net worth or name is no longer sufficient to ensure successful raising of funds from the market. In such a scenario, to enable the investors to take informed decisions, 'Credit Rating' has emerged as one of the most important financial services. Credit rating provides an impartial and objective opinion on the credit quality of debt obligations of different companies and assists investors, individuals and institutions in making investment decisions.

Credit Rating is defined by some well-known credit rating agencies in various ways.

Credit Rating Information Services of India Ltd. (CRISIL) Rating: "Credit rating is an unbiased, objective and independent opinion as to an issuer's capacity to meet its financial obligations. The CRISIL rating symbols indicate its current opinion in a summarized manner as to the relative safety of timely payment of interest and principal on a debenture, preference share, fixed deposit or short-term instrument."

Moody's Investor Service (USA): "Rating is designed exclusively for the purpose of grading bonds according to their investment qualities."

Standard and Poor's (USA): "A Standard and Poor's corporate or municipal debt rating is a current assessment of the creditworthiness of an obligor with respect to a specific obligation."


Related Discussions:- Credit rating

Walters model, A Ltd sells goods at Rs.10.P.U. Its variable cost Rs.7.P.U a...

A Ltd sells goods at Rs.10.P.U. Its variable cost Rs.7.P.U and fixed cost amount to Rs.1,70,000 it finances all its assets by equity funds. It pays 40% tax on its income. Z Ltd is

Leverage, what is financial leverage

what is financial leverage

Determine the operating profit of the firm, 1. The Gulf had sales of  AED 2...

1. The Gulf had sales of  AED 20,000,000 and cost of goods sold of  AED 10,250,000. Selling and administrative expenses represented 8 percent of sales. Depreciation was 5 percent o

Case let 2, how would you judge the potential profit of Bajaj Electronics o...

how would you judge the potential profit of Bajaj Electronics on the first year of sales to booth plastice and give your views to to increase the profit

Em.pirical finanse, give me your email then i will send it to you

give me your email then i will send it to you

Proper credit management, If a credit manager experience no bad debt losses...

If a credit manager experience no bad debt losses over the past year. Would this be an indication of proper credit management? Why or why not

Seed financing, It's a small amount of money which is used for initial mark...

It's a small amount of money which is used for initial market research or product development for a new venture.

Working capital, applicablility of operating cycle of broilers[poultry] in ...

applicablility of operating cycle of broilers[poultry] in uganda

Conversion ratio, It is the number that tells how many common stock...

It is the number that tells how many common stocks (or preference stocks) will the bondholder receive at the time of conversion. It is usually constant over

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd