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CONCLUSION

In India, the capital markets regulator, the Securities and Exchange Board of India (SEBI), regulates the rating agencies in the country.

Rated securities reflect healthy functioning of the capital market. Trading of rated securities both in the primary as well as the secondary market becomes smooth with easy marketability and liquidity.

Procedure of Credit Rating

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Contract between Rater and Client

Sending Expert Team to Client's Place

Data Collection

Data Analysis

Discussion

Credit Report Preparation

Submission to 'Grading Committee'

Grade Communication to Client

PROCEDURE

IMPORTANCE

TO COMPANIES

OBJECTIVES & FUNCTIONS

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  • Corporate Image
  • Lower Cost of Borrowing
  • Wider Audience for Borrowing
  • Beneficial for small firms
  • Credit Rating as a Marketing Tool
  • Growth and Expansion

TO INVESTORS

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  • Investment Decision
  • Benefit of Rating Reviews
  • Assurance of safety
  • Understanding of Investment Proposal
  • Choice of Instrument
  • Saving of time and effort

Meaning

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An assessment of the creditworthiness of a borrower in general terms or with respect to a particular debt or financial obligation. A credit rating can be assigned to any entity that seeks to borrow money – an individual, corporation, state or provincial authority, or sovereign government.

  • Rate debt obligations of Indian Companies
  • Rates long-term and short-term instruments and bank loans
  • Creates Awareness
  • Rating service for Small and Medium Enterprises (SMEs)
  • CRISIL Ratings serves lenders, investors, issuers, market intermediaries and regulators
  • Credit assessments of state governments

INFOSYS BPO

CRISIL

REFERENCES

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  • Indian Financial System-II
  • Management: Production and Finance by Michael Vaz
  • http://economictimes.indiatimes.com/crisil-ltd/capitalstructure/companyid-11303.cms
  • www.crisil.com

Credit Rating Information Services of India Ltd. (CRISIL) has been promoted by ICICI and UTI as a public limited company with its headquaters in Mumbai.

CRISIL Ratings is India's leading rating agency. They pioneered the concept of credit rating in India in 1987.

They have rated over 60,000 entities, by far the largest number in India.

MANAGEMENT STRUCTURE

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Recent Ratings

Bharati Airtel Ltd

Buyer Credit Limit - CRISIL A1+

LOC & BG - CRISIL A1+

CP Programme - CRISIL A1+

Tata Sky Ltd.

Letter of credit- CRISIL A

Letter of credit limit- CRISIL A1

Long term bank loan- CRISIL A

Non-convertible debentures- CRISIL A

Bill discounting facility- CRISIL A1

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Credit Rating Agencies in India

CODING

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