DEBT RATING INSTRUMENTS
- 2. RATING OF DEBT INSTRUMENTS • A debt instrument is a paper or electronic obligation that enables the issuing party to raise funds by promising to repay a lender in accordance with terms of a contract. • Rating of organisations evaluate the credit worthiness of an issuer with respect to debt instruments • General ability to pay back debt over the specified period of time. • The rating is given as an alphanumeric code that represents a graded structure or creditworthiness.
- 4. CREDIT RATING AGENCIES IN INDIA • CRISIL • ICRA • CARE
- 5. **CRISIL RATINGS IS INDIA'S LEADING RATING AGENCY. **PIONEERED THE CONCEPT OF CREDIT RATING IN INDIA IN 1987
- 6. • Promoted by IFCI LTD • It provides Rating, Information and Advisory services ranging from strategic consulting to risk management and regulatory practice. • •To provide regulators with market driven systems to encourage the healthy growth of capital markets. • •It provides rating services, information services and advisory services.
- 7. • •It offers services like Credit rating of debt instruments , Advisory services like securitization transactions, structuring financial instruments, financing infrastructure projects and municipal finances , Information services like providing information to companies, industry and businesses & Equity research • •It also provides advisory services in the areas of securitisation of transactions and structuring Financial Instruments.
- 9. GLOBAL RATING AGENCIES • Credit rating is a highly concentrated industry, with the "Big Three" credit rating agencies controlling approximately 95% of the ratings business.
- 10. MOODY'S INVESTORS SERVICES • Moody's Investors Service is a leading provider of credit ratings, research, and risk analysis. Moody's commitment and expertise contributes to transparent and integrated financial markets, protecting the integrity of credit. • Their published research and investor briefings draw thousands of attendees each year and keep investors current with the rationale underlying our credit opinions.
- 11. STANDARD & POOR'S • With 26 offices around the world and a history that dates back more than 150 years, S&P Global Ratings provides high- quality market intelligence in the form of credit ratings, research, and thought leadership.
- 12. FITCH RATINGS • Global leader in credit ratings and research • Leading provider of credit ratings, commentary and research. • Dedicated to providing value beyond the rating through independent and prospective credit opinions • Fitch Ratings offers global perspectives shaped by strong local market experience and credit market expertise