Benefits of Credit Rating

no-of-ratings-30-Sep-2017To the Rating Entities

  • Branding the organization with international standards
  • Higher rating assists to source finance at cheaper rate while lower rating assists an organization to take right steps for improvement
  • Know the business through the eye of independent professionals of high standard
  • Increase cost effectiveness of an organization
  • To comply with regulatory requirements for issuing bond/structured financial instrument, rights issue at premium, IPO at premium etc.

To the Regulators

  • To review the status of compliance
  • Independent evaluation of funded projects
  • Easy monitoring of the companies/Entities
  • Economic trend analysis.

To the Financial Institutions

  • To assess credit risk weight against exposure for different counter-parties under corporate and SME
  • Independent review of the projects seeking fund
  • Project construction monitoring and compliance
  • As a benchmark to avoid unnecessary political and other pressure on project financing
  • To know the project’s strengths and weaknesses
  • Review of Capital Adequacy, liquidity, asset quality,cost effectiveness, profitability, peer comparison, management effectiveness etc