Public issue of debentures and pvt placement to mutual funds now require that the issue be rated by a credit rating agency like CRISIL (Credit Rating and Information Services of India Ltd.). The credit rating is given after evaluating factors like track record of the company profitability, debt servicing capacity, credit worthiness and the perceived risk of lending.
So my question is if the company is newly formed then how the CRISIL will issue the rate as the newly formed company won't have the track record ? How the rate will be issued ?
Pls help me to find the answer
Thank you
CAclubindia
