credit rating agencies

932 views
881 views

Published on

0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
932
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
63
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

credit rating agencies

  1. 2. Dimple Punjabi Roll No.01 Sneha Rijhwani Roll No.02 Harsha Matta Roll No.10 Yashoda Gehani Roll No.11 Deepa Sukhwani Roll No.09 Sheetal Ludhwani Roll No.40 Anisha Vaswani Roll No.41 Dhirti Makhija Roll No.42
  2. 5. Credit Ratings Methodology Business Risk Profile Analysis Financial Risk Profile Analysis
  3. 6. Business Risk Country Risk Company Position Industry Factors Profitability / Peer Group Comparisons <ul><li>Political </li></ul><ul><li>Economic </li></ul><ul><li>Industry – Specific factors </li></ul><ul><li>Foreign exchange </li></ul><ul><li>Industry Trends </li></ul><ul><li>Industry Structure </li></ul><ul><li>Market Size </li></ul><ul><li>Growth Potential </li></ul><ul><li>Competition </li></ul><ul><li>Changing Technology </li></ul><ul><li>Competitive Factors </li></ul><ul><li>Market position </li></ul><ul><li>Keys to Success </li></ul><ul><li>Size </li></ul><ul><li>Diversification </li></ul><ul><li>Management </li></ul><ul><li>Validation of “Company </li></ul><ul><li>Position” </li></ul><ul><li>Trends </li></ul><ul><li>Quality of Earnings </li></ul><ul><li>& Analytical adjustments </li></ul><ul><li>Peer Group Comparisons </li></ul>
  4. 7. Financial Risk Accounting Cash Flow Adequacy Governance Risk Liquidity / Short-term Factors <ul><li>Accounting Regime </li></ul><ul><li>Reporting & Disclosure </li></ul><ul><li>Analytical adjustments </li></ul><ul><li>Ownership </li></ul><ul><li>Board of directors </li></ul><ul><li>Management practices </li></ul><ul><li>Financial Strategy </li></ul><ul><li>Risk Tolerance </li></ul><ul><li>Accounting Practices </li></ul><ul><li>Internal controls </li></ul><ul><li>Focus on debt </li></ul><ul><li>service capability </li></ul><ul><li>Analytical distinctions with </li></ul><ul><li>profitability </li></ul><ul><li>Cash flow measures / </li></ul><ul><li>ratios </li></ul><ul><li>Operating sources & uses </li></ul><ul><li>Of liquidity </li></ul><ul><li>Debt Characteristics </li></ul><ul><li>Bank credit facilities </li></ul>
  5. 8. CRISIL(CREDIT RATING AND INFORMATION SERVICES OF INDIA LTD.) <ul><li>A global analytical company. </li></ul><ul><li>Incorporated in year 1987. </li></ul><ul><li>Provides ratings research and policy advisory services. </li></ul><ul><li>CRISIL is India's leading rating agency, and is the fourth largest in the world. </li></ul><ul><li>Offerings-real Timenews, Analysed data , incisive insights & opinions &expert advice. </li></ul><ul><li>So far CRISIL has 30000 debt instruments covering the entire debt market. </li></ul>
  6. 9. DEBT OBLIGATIONS RATED BY CRISIL INCLUDE
  7. 10. FUNCTIONS OF CRISIL
  8. 11. CRISIL LONG TERM RATING SCALE
  9. 12. CRISIL SHORT TERM RATING SCALE
  10. 13. <ul><li>ICRA was set up by IFCI on 16th january 1991. </li></ul><ul><li>A public limited company. </li></ul><ul><li>An authorized share capital of rs.10crores, rs. 5 crores is paid up. </li></ul><ul><li>To provide information & guidance to investors. </li></ul><ul><li>ICRA’S major shareholders IFCI (26%). </li></ul><ul><li>Determines the credit risk associated with a debt instrument . </li></ul>ICRA : INVESTMENT INFORMATION & CREDIT RATING AGENCY OF INDIA LIMITED.
  11. 14. ICRA LONG TERM RATING SCALE
  12. 15. ICRA SHORT TERM RATING SCALE

×