about introduction of credit rating

1. What is a Credit Rating?

2. What is a Credit Rating?

3. Types of Credit Rating

4. Types of Credit Rating (Contd.)

5. Need For Credit Rating

6. Credit Rating Agency

7. Who Are The Credit Rating Agencies?
Country Name
Australia Australian Rating
International Standard and Poor's
International Moody's Investors Service
Europe Central European Rating Agency
Europe Fitch / IBCA
Japan Nippon Investors Service
Japan Japan Credit Rating Agency Ltd
Taiwan Taiwan Ratings Corporation
India Credit Rating Information Services of India
China Shanghai Far East Credit Rating Co Ltd.
Russia RUS Ratings
Bangladesh Credit Rating Information and Services Limited (Bangladesh)

8. QUANTITATIVE FACTORS
• CAPITAL ADEQUACY
• ASSET QUALITY
• EARNINGS QUALITY
• LIQUIDITY
• COMPETITIVE POSITION
• SIZE AND MARKET PRESENCE

9. QUALITATIVE FACTORS
• RISK MANAGEMENT
I. CREDIT RISK
II. MARKET RISK
III. OPERATIONAL RISK
• Ownership and Support
• MANAGEMENT QUALITY
• CORPORATE GOVERNANCE
• COMPLIANCE WITH STATUTORY REQUIREMENTS
• ACCOUNTING QUALITY
• FRANCHISE VALUE

12. The countries that have perfect
credit rating:

13. Credit Rating Process

14. Rating Process

15. Benefits of Credit Ratings
* Investor protection * Eases risk identification and
diversification
* Market discipline * Improves liquidity of security

16. • Possibility of bias exist.
• Improper discloser may happen.
• Impact of changing environment.
• Problems for new companies.
• Downgrading y rating agencies.
• Difference in ratings.