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Akshay Hedau...03 Bhaves Lakhotiya..11
Haresh Savaliya.13
Manoj Pal...20
Vikash Singh..22
Akshay Patil..75
Viraj Parab.76
Sushant Hankare ..70
Rohan Parab..62
Jay Naik..33
Prof. Sujata Pandy
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It assesses credit worthiness of an individual,corporation, or a country
Calculated from financial history and currentassets and liabilities
It tell the investor the probability of the subjectbeing able to pay back the loan
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The first credit rating agency wassetup in new york In 1981
Later it was taken over by RobertDun, agency publish its first ratingguide in 1859
The second credit rating agency
was establish by john bradstreet in1949
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Fitch rating(UK/US) John Knowles Fitch in 1913. (1924 AAA to D rating system)
Moody investors service (US)- John moodyand company in 1900
Standard & Poors(US)-Henry Varnum Poor in 1941
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CRISIL (Credit rating and information services ofindia ltd)1987
ICRA ltd(Investment information and credit ratingagency of India ltd)1991
CARE(credit analysis and research ltd)1994
Duff and phelps credit rating India ltd 1996
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Standard and poors rating services traces its history back to 1860,the year that HENRY VARNUM POOR published the history ofrailroads and canals of the united states.
POOR was concerned about the lack of quality informationavailable to investors and embarked on a campaign to publicizethe details of corporate operations.
Standard and poor has been publishing credit ratings since 1916,
providing investors and market participants worldwide withindependent analysis of credit risk.
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It is the first rating agency in India
It was promoted in 1987 by the Industrial Credit and
Investment Corporation of India Limited (ICICI) and
Unit Trust of India (UTI).
The head office of the company is located at Mumbai
and it has established offices outside India also.
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Acts as a marketing tool. Useful input in the decisions relating to lending and
investments.
Helps in establishing business relationships with
Business Counter-parties. Rating safeguards against bankruptcy through
recognition of risk.
Helps merchant bankers, brokers, regulatoryauthorities etc. to determine eligibility criteria.
Increases transparency of the financial system
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By Investors
By a Company
By Businesses & Financial
Institutions
By Intermediaries
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1.Safeguards against bankruptcy
2. Recognition of risk
3.Credibility of the issuer
4. Independence of investment and quickinvestment decision
5.Low cost of borrowing
6.Merchant bankers job made easy 7. Foreign collaborations made easy
8.Saves time, money, energy, and manpower inconvincingtheir clients about investments.
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9.Less effort in studying companys credit
position to convincetheir clients.
10. Easy to select profitable investmentsecurity
11. Helps to improve business
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Past credit
Liens of credit
Bill paying
Current debt
Credit Applications
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Credit ratings are only opinion about the relative creditrisk.
Credit ratings are not investment advice to buy or holdsecurities , they are just one factor investor mightconsider while making investment decision
Credit ratings are not guarantee of credit quality of a nindividual, it basically calculates probability of
payment.
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Impact on Indian Economy
Impact on Indian Stock Market
Impact on Gold prices
GENERAL IMPACTS
(On Countries who have been downgraded)
Impact on FDI & FII Impact on Borrowing Cost
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Make loan payments on time and for the correctamount.
Avoid overextending your credit. Unsolicited credit
cards that arrive by mail may be tempting to use, butthey won't help your credit score.
Never ignore overdue bills. If you encounter anyproblems repaying your debt, call your creditor to
make repayment arrangements. If you tell them you arehaving difficulty, they may be flexible.
Be aware of what type of credit you have. Credit fromfinancing companies can negatively affect your score.
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Keep your outstanding debt as low as you can.Continually extending your credit close to your limit isviewed poorly.
Limit your number of credit applications. When yourcredit report is looked at, or "hit," it is viewed as a badthing. Not all hits are viewed negatively (such as thosefor monitoring of accounts, or prescreens), but mostare.
Credit is not built overnight. It's better to provide
creditors with a longer historical time frame to review:a longer history of good credit is favored over a shorterperiod of good history.