This document is a student research project on credit rating agencies that was prepared by S. Avinash and supervised by Dr. Debi Prasad Satapaty. It discusses credit rating agencies, including their objectives and major findings. Some key points include: credit rating agencies evaluate creditworthiness and assess ability to repay debt; major agencies in India include CRISIL, ICRA, CARE, and Fitch; and credit ratings play a central role in debt markets by helping investors and lending institutions assess risk.

1. IBFS
STUDENT RESEARC PROJECT
CREIDIT RATING
AGENCY
PREPARED BY
S. AVINASH (190209120027)
BATCH 2019 SCHOOL OF MANAGEMENT
STUDENTS
CENTURION UNIVERSITY OF TECHONOLOGY
AND MANAGEMENT
R. SETHAPUR(ODISHA)
GAJAPATHI DIST
SUPERVISED BY
DR. DEBI PRASAD SATAPATY
PROFESSOR
CENTURION UNIVERSITY OF TECHONOLOGY
AND MANAGEMENT
R. SETHAPUR(ODISHA)
GAJAPATHI DIST

2. Index
 Introduction
 Literature review
 Objectives
 Research methodology
 Major finding
 Conclusion

3. Introduction
credit rating agency (CRA, also calleda ratings service) is a company that
assigns credit ratings, which rate a debtor's ability to pay back debt by
making timely principal andinterest payments and the likelihoodof default.
An agencymay rate the creditworthiness of issuers of debt obligations, of
debt instruments and in some cases, of the servicers of the underlying
debt, but not of individual consumers.
credit rating agency:
A credit rating agency (CRA) evaluates and assesses an individual's or a
company's creditworthiness. Thatis, these agencies consider a debtor's income
and credit lines to analysethe debtor's ability to repay the debt or if there is any
credit risk associated.
These are main 3 credit rating agencys. These agencies include
 Equifax
 Experian
 TransUnion
Equifax :
Equifax tracks the credit history of borrowers in order to generate credit reports
and credit scores. Itsells this information to banks and other financial institutions
in order to help them determine the credit risk of their customers
Experian:
Experian is one among the SEBI and RBI approved credit rating agencies. Similar
to the other credit rating agencies, Experian stores consumer information in its
repository and retrieves them into a reportwhenever an enquiry arises.
Transunion:
TransUnion CIBIL collects monthly data from financial institutions with regards to
your loans and credit card payments. On the basis of the information provided,

4. CIBIL willgenerate your credit reportand credit score, which is used by lenders to
determine your financial health.
features of credit rating agency:
1. Credit rating shows the ability of the borrower to pay the debt to the lender
on requestto the credit bureau.
2. The calculation of it depends on the financial history, currentassets and
liabilities.
3. The probability of a borrower to pay back of its loan can be seen by this
which tells a lender or investor about it.
Credit rating agency in india:
A credit rating agency rates various entities as borrowers based on their
repayment ability using a range of metrics and factors. These entities exclude
individuals,and the rating takes the formof letters such as AAA, CCC and so on .
since the amount borrowed by organisation can run into lakhs and crores, those
who invest in or lend to these organisations facea comparatively high risk.thus
with these credit ratings, investors or lenders can make better decisions regarding
organisationalborrowers who may be:
 Start government
 Local governmentbodies
 Companies
 Special purposeentities
 Non- profile organisation
List of credit rating agency in india:
 CRISIL
 ICRA
 CARE
 FITCH RATINGS INDIA PVT. LTD.
 ONICRA
 SMERA
 BRICKWORK RATING INDIA PVT. LTD.

5. Literature review
 According to the Tarun Jain, Raghav Sharma Credit Rating Agencies (CRAs)
influence investor behavior and regulate issuers'access to financial markets
and thus, they act as markets' gatekeepers. Further, given the statutory
requirements for rating of securities beforetrading can commence thereon,
CRAs occupy an intriguing inter-twined position of quasi-public regulators
charged with the implementation of good governance norms and
informational intermediaries seeking to protect the investors by purging the
markets of information asymmetry. However, the conflict of interest issues
add complexity to this scenario and the role of CRAs, after their complicity in
the sub-prime mortgage crisis, is being debated internationally.
 According to the Madegowda Since 1987, credit rating has made headway
into the Indian capital market. Since their inception, credit rating agencies
have played a significant role in the Indian capital market as have their
counterparts abroad. At the same time, the working of the rating agencies
has been criticized by many for not having been able to accomplish the
coveted goal of investor interest protection as they failed in predicting the
fall of big corporate concerns. Rating agencies were also under the scanner
during the current global financial crisis. Against the backdrop of their role
and criticism, the paper makes an attempt to elicit and analyze the opinion
of investors on the working of creditrating agencies in India and offers some
suggestions to enable the rating system to be efficient and effective
.
 According to the Lawrence J White Credit rating agencies (CRAs) play a
central role in the debt (bond) markets of many countries. CRAs have also
attracted a considerable amount of public and policy attention during the
past decade, especially with respect to their role in the financial crisis of
2008–2009 and their role in the more recent Eurozone difficulties. This
article provides an overview of the CRAs: who they are, what they do, how
their centrality to the financial markets came about, what their role in the

6. financial crisis was, and the important aspects of the policy measures that
have affected the CRAs.
 According to the H Kent Baker, Sattar A MansiJournalof Business Finance &
Accounting Weexamine how a sample of publicly traded corporatebond
issuers and institutional investors assess thefour major nationally
recognized rating agencies and their role in capital markets. The results
show that issuers and investors differ dramatically in their assessments
about rating agencies. Specifically, the majority of institutional investors
require only one rating when they buy rated corporatebonds, but most
issuers obtain two or more ratings. Issuers and investors also differ in their
assessments aboutwhether ratings accurately reflect creditworthiness and
timeliness. The results suggestthat differences reflect the different roles
that rating agencies providein the market place.
 According to the Frank Partnoy , Councilof Institutional Investors, This white
.paper was commissioned by the Council of Institutional Investors for the
purpose of educating its members, policymakers, and the general public
about important credit rating agency regulation proposals and their
potential impact on investors. It offers an institutional investor perspective
of the prosand cons of severalproposalsforredesigningcredit rating agency
regulation. It focuses on two areas of primary importance-oversight and
accountability-and offers specific recommendations in both areas.

7. Objectives of credit rating agencies
 To understand about the credit rating and futures of the credit rating
agencies.
 To know the list of credit rating agencies in india..
 Facilities formulation of public guidelines on institutional investments.
 Understanding the merchant bankers, brokers, regulatory authorities ect .
Discharging their functions related dedt issues.
 Helps individual and institutional investors in making informed investment
decisions.
 Enable intermediaries to place debt instruments with investors by providing
them with an effective marketing tool.

8. Research methodology
Data Design:
 The presentData is an empirical study of analysis for the credit
rating agencies data.
The required data for indian credit rating and credit services,further
credit rating.
 Secondary data for Finding Credit rating agencies (CRAs) play a central role
in the debt (bond) markets of many countries and some review literatures.
credit rating has made headway into the Indian capital market.
 covers an analysis of industry risk, market positionin the country,
operating efficiencyof the company and legal position.
Date collection:
 These Data have been collected from various sources and websites.
Bajaj finance and Google scholar.
 In the Google scholar find many review literatures . Refersome
review literatures fix some .

9. Major findings
 The study of Data that whatis credit rating agencies. List the major credit
rating agencies in india and explain about are indian credit, credit services
and reviews
 The future credit and type are in credit services.
 CRA play a central role in the debt (bond) markets of many countries. Credit
helps in india economy.
 credit rating has made headway into the Indian capital market.
 Ithelps individuals to makea well thought out the credit rating agencies in
the economic.
Conclusion
A creditrating is a usefultoolnot only forthe investor, but also forthe entities
looking forinvestors.An investmentgrade rating can put a security, company
or country on the global radar, attracting foreign money and boosting a
nation's economy.Indeed,for emerging market economies,the credit rating
is key to showcase their worthiness of money for foreign investors, and
because the credit rating acts to facilitate investments, many countries and
companies will strive to maintain and improve their ratings, hence ensuring
a stable politicalenvironment and bettertransparency. Creditrating agencies
can bestserve markets Credit rating agencies should be made accountable
for any faulty rating.