Monday, November 01, 2010

credit rating_3

How is credit rating done?

Ratings are based on a comprehensive evaluation of the strengths and weaknesses of the company along with an in-depth study of the industry as well as macro-economic, regulatory and political environment.

credit rating_2

Is a credit rating in the nature of a recommendation?

No, a credit rating is not a recommendation to buy, sell or hold a debt instrument. It is a comment only on the credit risk in an instrument. Rating only provides an additional input to the investor and the investor is required to make his own independent and objective analysis before arriving at an investment decision.

credit rating_1

What is credit rating?

A credit rating is an opinion regarding timely payment of interest and principal on a debt instrument. A simple alphanumeric symbol is normally used to convey a credit rating.