Speculative grades :
BBB Sufficient safety BB -Inadequate safety B - High risk C - Substantial risk D - Default
Credit rating agencies also provides services ice industry reports, corporate reports, seminars and open access to the analysts of the agencies.
IssuersCompared to unrated securities, issuers of rated securities have access to much wider investor base & more faith is placed.
Investor confidence enables issuers of highly rated instruments to access market even under adverse market conditions. IntermediariesMerchant bankers use rating for planning, pricing, underwriting, placement. Brokers and dealers in securities use rating as an input for their monitoring of risk exposures
RegulatorsRestrict entry to market of new issues rated bellow a particular grade. Prohibit investors from purchasing or holding of instruments rated bellow a particular level
CORPORATE
SOVEREIGN (i.e. A Country) FINANCIAL INSTRUMENTS Bonds Bank Deposits Commercial Paper Term Loans Preference Shares Secured Debt Unsecured Debt Securities
GVC Ratings (Governance & value creation) Maritime Grading MFI Grading ( Microfinance Institution) Project Credit Ratings Recovery Risk Ratings
Fitch India
Brickworks(2007)
ICRA (formerly Investment Information and Credit Rating Agency of India Limited)
ICRA was set up by IFCI(Industrial Finance Corporation of India) on 16th January1991. ICRA Limited is in Alliance with Moody's Investors Service and ICRA s largest shareholder. a public limited company major shareholders are UTI,LIC,GIC,PNB,SBI,Central Bank of India, Bank of Baroda, UCO Bank Rating
Mutual Fund Rating SME Rating Credit Rating Corporate Debt Rating Insurance Sector Rating Infrastructure Sector Rating
Grading
Grading of IPO Microfinance Institutions Colleges/Universities Construction Grading Real Estate Grading
CARE
inception in April 1993 promoted by IDBI CARE Ratings has completed over 13023 rating assignments having aggregate value of about Rs. 36653 bn Services such as Grading, Rating, Research
FITCH INDIA
Fitch India ,a 100% subsidiary of Fitch
BRICKWORKS
Incorporated in 2007
Future of CRAs
Growth in Financial market Money market Capital market Primary market Secondary market
Career Opportunities:
Financial analyst Rating analyst Credit analyst Business analyst Internships/Apprentice Research analyst