Credit Rating Agencies

This query is : Resolved

Share Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

21 January 2010 hello experts,
What are Credit Rating Agencies?

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

21 January 2010 A credit rating agency (CRA) is a company that assigns credit ratings for issuers of certain types of debt obligations as well as the debt instruments themselves. In some cases, the servicers of the underlying debt are also given ratings. In most cases, the issuers of securities are companies, special purpose entities, state and local governments, non-profit organizations, or national governments issuing debt-like securities (i.e., bonds) that can be traded on a secondary market. A credit rating for an issuer takes into consideration the issuer's credit worthiness (i.e., its ability to pay back a loan), and affects the interest rate applied to the particular security being issued. (In contrast to CRAs, a company that issues credit scores for individual credit-worthiness is generally called a credit bureau or consumer credit reporting agency.) The value of such ratings has been widely questioned after the 2008 financial crisis.

Querist : Anonymous

Querist : Anonymous (Querist)

21 January 2010 can u name few of them

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

22 January 2010 1. Credit Analysis & Research Ltd (CARE)
2. Investment Information and Credit Rating Agency (ICRA)

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

22 January 2010 thanks a lot

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now