credit rating

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Mugdha (Querist)
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26 January 2011 Dear experts i want to know what credit rating agencies do? how do they help to companies ? i work with some company and i found our company had made some payment to credit rating agencies. our company has taken loan, and how do credit rating agency do help us in this matter please clarify

Kumar

Kumar (Expert)
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26 January 2011
Credit rating agencies (CRA) analyses your financial position, performance and other aspects and gives a rating to your company.

CRA rates based on grades say AAA+ etc.

The lender decides on the amount of loan that can be given to your company by considering the rating given by CRA, interalia.

Mugdha

Mugdha (Querist)
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28 January 2011 Thank you sir . now i got the idea about credit rating