What is Credit Rating Agency Why is it Important for the Financial Business? A credit rating agency (CRA) measures the debtor’s ability to pay back the loan by making timely principal and interest payments and the possibility of default. Agencies show how strong the country and institution is financial. Three Standard & Poor, Moody’s, and Fitch names in rating world. Credit rating agencies indirectly tell how strong the country, institution, or person is financially and how much loan or loan to them is dangerous or not. That is, how much debt he has the ability to repay. It basically tells investors that a firm has a track record and shows how likely it is to be able to return the money. Currently, there are three Standard & Poor, Moody’s, and Fitch names in the rating world. They occupy about 95 percent of the market. So far, 6 credit rating agencies under SEBI, CRISIL, ICRA, CARE, SMERA, Fitch India, and Brickwork Ratings have been registered by these agencies. The rati...
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