The document provides an overview of credit rating agencies, defining their role in evaluating the creditworthiness of various debt instruments such as government and corporate bonds. It highlights key players in the industry, including Moody's Investors Services and Standard & Poor's Corporation, detailing their history and range of services. The document also mentions other international agencies involved in credit rating and includes references for further reading.

1. CREDIT RATING AGENCIES

2. TOPICS
• MEANING AND DEFINITION
• INTERNATIONAL AGENCIES
• REFERENCES

3. MEANING
• Credit rating agency means a body corporate
which is engaged in the business of rating of
securities offered by companies.
• The debt instruments rated by CRAs
include government bonds, corporate
bonds, CDs, municipal bonds, preferred stock,
and collateralized securities, such
as mortgage-backed
securities and collateralized debt obligations.

4. DEFINITION OF CREDIT RATING
• According to CRISIL, credit rating is “an
unbiased and independent opinion as to
issuer’s capacity to meet its financial
obligations. It does not constitute a
recommendation to buy , sell or hold a
particular security”
• According to Moodys , “ratings are designed
exclusively for the purpose of grading bonds
according to their investment qualities”

5. INTERNATIONAL AGENCIES
• MOODY’S INVESTORS SERVICES
• STANDARD AND POOR’S CORPORATION(S &P)

7. MOODY’S INVESTORS SERVICES
• John Moody founded the Moody’s agency at
the beginning of the 20th century.
• It undertakes the rating of wide range of debt
related securities , international issues ,
commercial papers , etc. Both in USA and
international markets.
• Other services include- assessing financial
strength of insurance companies , mutual
funds, banks , public utilities.

9. STANDARD AND POOR’S
CORPORATION(S &P)
• One of the first credit rating institutions which
has a history of 157 years, founded in the year
1860.
• Offers rating on wide range of debt securities ,
both in the US and overseas markets.

10. OTHER INTERNATIONAL AGENCIES
• Duff and Phelps Credit Rating Company
• Japan Credit Rating Agency
• Fitch Investors Service
• Thomason Bank Watch
• IBCA Ltd

11. REFERENCES
• FINANCIAL SERVICES TEXTBOOK FOR 4TH
SEMESTER B.COM BY DR.ANTONY
THOMAS(M.G. UNIVERSITY)