Is there any benefit by credit rating of the company.
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Credit rating
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YES IT DOES HAVE......TO BOTH THE INVESTOR AND THE COMPANY......
THE DETAILS ARE GIVEN AS FOLLOWS....
The benefits of a CRISIL rating are manifold, ranging from reduction in information asymmetry in the market at the macro level to facilitating comparative assessment of investment options, enhancing access to investor funds, and complementing an investor's own credit analysis at the micro level. Every segment of the market has been benefiting from CRISIL's credit ratings. Some of the benefits of CRISIL's credit ratings are as follows:
For the Financial System
- Reduces information asymmetry in the market by providing quality credit information on debt instruments to all market players
- Facilitates pricing of debt instruments
For Investors
- Facilitates comparative assessment of investment options, as ratings are designed to be comparable across issuers in different businesses
- Complements investors' own credit analysis
- Facilitates asset monitoring, as ratings are kept under review until the rated instrument is repaid
For Issuers
- Provides independent credit information from a credible third party to the community of potential investors
- Enhances issuer's access to investor funds
- Helps issuer differentiate itself in the market
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