Financial management

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

Replies (3)

Dear Lakshmi,

The rating also has lot to do with the type of management the company has.

Each every factor might be having a particular weightage & based on that the rating couls be issued. However in case some of factors are missing like the previous track record then the rating will get negatively affected to that extent

I do not know much of this. but this is what i presume the picture couls be.


 

Thank you sir for ur response

IT depends on the factors like the financial stength, Directors, MD etc. Also they can see many ratios like debt equity, loans, Current and Quick ratio etc. So for the first 2-3 years it is difficult to predict the rating on the past records....

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 26 August 2026
Article Assistant

ANIVESH CONSULTANTS LLP

Gurgaon

CA Inter

View Details
Company
18 August 2026
CA Semi Qualifies

Goyanka and Associates

New Delhi

CA Inter

View Details
Company
28 August 2026
Audit Manager

K A R M & CO

Mumbai

CMA

View Details
Company
11 August 2026
Manager / Senior Manager - Statutory Audit

CommerceCareer

New Delhi

CA

View Details
Company
ARTICLESHIP 17 August 2026
Article Assistant

Jain Ankit and Co

Gurgaon

CA Inter

View Details
Company
07 August 2026
Chartered Accountant

Devesh Garg and co

New Delhi

CA

View Details
Company
11 August 2026
Chartered Accountant

Aviv Global Pvt Ltd

Ahmedabad

CA

View Details
Company
19 August 2026
Chartered Accountant - Financial Consolidation & Reporting

Synergy Keystone

Mumbai

CA

View Details