Credit Rating Agencies.pptx
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Credit Rating Agencies- company that assigns credit ratings, which rate a debtor's ability to pay back debt by making timely principal and interest payments and the likelihood of default.
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Credit Rating Agencies.pptx
- 1. Dr. V N BEDEKAR INSTITUTE OF MANAGEMENT STUDIES Under the Guidance of Dr. SMITA JAPE
- 2. P14 P19 P11 P46 P31 TEAM MEMBERS RUTUJA PAWAR SHIVANI KATAKDHOND SWAPNIL GALANDE SWARALI GHOSALKAR VISHAL DOKE
- 3. CREDIT RATING A credit rating is an evaluation of the credit risk of a prospective debtor, predicting their ability to pay back the debt, and an implicit forecast of the likelihood of the debtor defaulting.
- 4. CREDIT RATING AGENCIES • A company which rates the debtors on their ability to pay back the debt in a timely manner.
- 5. CREDIT RATING METHODOLOGY MANAGEMENT REGULATORY & COMPETITIVE FUNDAMENTAL FINANCIAL GEOGRAPHICAL BUSINESS
- 6. Superior Information & nhance corporate image. Helps in formulation of public policy. Provides a Basic for Suitable risk & return. Low Cost Information. KEY FUNCTIONS
- 7. To Company To Investors • Improve corporate image • Good for non popular companies • Act as a marketing tool • Easy to raise resource • Helps in growth and expansion • Helps in investment decision • Easy understanding of investment proposal • Dependable credibility of issuer BENEFITS
- 8. BIG 3 CRA
- 9. MOODY’S Moody's Corporation is an American financial services company that acts as the holding company for Moody's Investors Service and Moody's Analytics. It was founded by John Moody in 1909.
- 10. MOODY'S CREDIT RATING AGENCY SCALE LONG TERM SHORT TERM AAA P1 INVESTMENT GRADE AA1 AA2 A1 P2 A2 A3 BAA1 BAA2 P3 BAA3 BA1 NON INVESTMENT GRADE BA2 BA3 B1 NP B2 B3 CAA1 CAA2 CAA3 CA C
- 11. Standard & Poor's S&P Global Inc. is an American publicly traded corporation headquartered in Manhattan, New York City. Its primary areas of business are financial information and analytics. It was founded by James H. McGraw.
- 12. S&P'S CREDIT RATING AGENCY SCALE LONG & SHORT TERM AAA INVESTMENT GRADE AA A BBB BB SPECULATIVE GRADE B CCC CC NON INVESTMENT GRADE C D
- 13. FITCH RATINGS Fitch Group is a global leader in financial information services that rates the viability of investments relative to the likelihood of default with operations in more than 30 countries. It was founded by John Knowles Fitch.
- 14. FITCH'S CREDIT RATING SCALE LONG & SHORT TERM AAA INVESTMENT GRADE AA A BBB BB NON INVESTMENT GRADE B CCC CC C RD D
- 15. CREDIT RATING AGENCIES IN INDIA
- 16. CRISIL Credit Rating Information Services of India Limited. CRISIL is an Indian analytical company providing ratings, research, and risk and policy advisory services and is a subsidiary of American company S&P Global. It was founded in 1987.
- 17. CRISIL CREDIT RATING SCALE IN INDIA SAFETY LEVEL LONG TERM SHORT TERM HIGHEST SAFETY AAA A1 INVESTMENT GRADE HIGH SAFETY AA A2 ADEQUATE SAFETY A MODERATE SAFETY BBB A3 INADEQUATE SAFETY BB NON- INVESTMENT GRADE HIGH RISK BBB A4 SUBSTANCIAL RISK C DEFAULT D / SD D / SD
- 18. ICRA Investment Information and Credit Rating Agency. ICRA Limited is an Indian independent and professional investment information and credit rating agency. It was established in 1991.
- 19. ICRA LONG TERM DEBT INSTRUMENTS RATING SYMBOL SYMBOL SAFETY LEVEL L AAA HIGHEST SAFETY L AA HIGH SAFETY L A ADEQUATE SAFETY L BBB MODERATE SAFETY L BB INADEQUATE SAFETY L B HIGH RISK L C SUBSTANCIAL RISK L D DEFAULT ICRA MEDIUM TERM INSTRUMENTS (including FD & COD) SYMBOL SAFETY LEVEL M AAA HIGHEST SAFETY M AA HIGH SAFETY M A ADEQUATE SAFETY M B INADEQUATE SAFETY M C HIGH RISK M D DEFAULT ICRA SHORT TERM INSTRUMENTS RATING SYMBOLS (including COMMERCIAL PAPERS) SYMBOL SAFETY LEVEL A1 HIGHEST SAFETY A2 HIGH SAFETY A3 ADEQUATE SAFETY A4 INADEQUATE SAFETY A5 DEFAULT
- 20. CARE Credit Analysis and Research Limited. Care Ratings has emerged as the leading agency for covering many rating segments including manufacturing, infrastructure, financial sector including banks, non-financial services, among others. It was established in 1993.
- 21. CARE LONG TERM & MEDIUM TERM INSTRUMENT RATINGS SYMBOLS SYMBOL SAFETY LEVEL CARE AAA HIGHEST SAFETY CARE AA HIGH SAFETY CARE A ADEQUATE SAFETY CARE BBB MODERATE SAFETY CARE BB INADEQUATE SAFETY CARE B HIGH RISK CARE C SUBSTANCIAL RISK CARE D DEFAULT CARE SHORT TERM INSTRUMENTS RATING SYMBOLS SYMBOL SAFETY LEVEL PR1 HIGHEST SAFETY PR2 HIGH SAFETY PR3 ADEQUATE SAFETY PR4 INADEQUATE SAFETY PR5 DEFAULT
- 22. India Rating and Research Pvt. Ltd India Ratings and Research Pvt Ltd is a securities rating agency. The Company maintains coverage of corporate issuers, financial institutions, which includes banks and insurance companies. Subsidiary of the Fitch Group. It was established in 2007.
- 23. Long Term Debt Instruments Short Term Structured Finance Instruments Long Term Credit Enhanced Instruments Short Term Credit Enhanced Instruments IND AAA IND A1 (SO) IND AAA (CE) IND A1 (CE) IND AA IND A2 (SO) IND AA (CE) IND A2 (CE) IND A IND A (CE) IND BBB IND A3 (SO) IND BBB (CE) IND A3 (CE) IND BB IND BB (CE) IND B IND A4 (SO) IND B (CE) IND A4 (CE) IND C IND C (CE) IND D IND D (SO) IND D (CE) IND D (CE)
- 24. Acuite Ratings & Research Limited Acuite Ratings & Research Limited is a full service credit rating agency accredited by RBI as an ECAI and registered with the Securities and SEBI. It was established in 2005.
- 25. LONG TERM INSTRUMENTS SHORT TERM INSTRUMENTS ACUITE AAA ACUITE A1 ACUITE AA ACUITE A2 ACUITE A ACUITE BBB ACUITE A3 ACUITE BB ACUITE B ACUITE A4 ACUITE C ACUITE D ACUITE D
- 26. Brickwork Rating Brickwork Ratings (BWR) is a Bengaluru based Credit Assessment Agency registered with the Securities and Exchange Board of India (SEBI). It was established in 2007.
- 27. LONG TERM DEBT INSTRUMENTS SHORT TERM DEBT INSTRUMENTS BWR AAA BWR A BWR AA BWR A2 BWR A BWR BBB BWR A3 BWR BB BWR B BWR A4 BWR C BWR D BWR D SYMBOL SECURITY PPMLD Principal Protected Market Linked Debentures SO Structured Finance Instruments CE Credit Enhancement instruments mfs Debt mutual fund scheme
- 28. Infomerics Valuation and Rating PVT Ltd Infomerics Valuation & Rating Pvt Ltd strives to offer an unbiased and detailed analysis and evaluation of credit worthiness to NBFCs, banks, corporates and small and medium scale units. It was established in 1986.
- 29. SYMBOL SECURITY PPMLD Principal Protected Market Linked Debentures [PPMLD] SO Structured Finance Instruments CE Credit Enhancement instruments mfs Debt mutual fund scheme RR Recovery Rating Scale Is Issuer Rating Scale F Fixed Deposits AIF Alternative Investment Fund LONG TERM DEBT INSTRUMENTS SHORT TERM DEBT INSTRUMENTS IVR AAA IVR A IVR AA IVR A2 IVR A IVR BBB IVR A3 IVR BB IVR B IVR A4 IVR C IVR D IVR D
- 31. THANK YOU