Credit Rating Agencies

Group 12
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Introduction & Concepts of Credit Rating Credit Rating Methodologies

01 Himanshu Rajoriya
(3313) 03 Aditya Kumar Singh
(3343)

Types of Credit Rating Advantages & Disadvantages

02 Karanam SreeHarsha
(3330) 04 Gutti Vijay Chandra
(3327)
 Types of Credit Rating

Corporate Debt Rating

A corporate debt rating is a numerical or quantified
1 Bank Loan Credit Rating
Bank loan credit ratings are ratings issued by credit

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assessment of a company's creditworthiness, which
shows investors the likelihood of a company
defaulting on its debt obligations or outstanding
bonds
rating agencies to facilities that are availed by
borrowers in the form of fund based and non fund
based facilities

Financial Sector Rating

Financial Sector Debt Ratings cover entities like
3 Corporate Governance Rating
Corporate Governance Rating is an opinion on

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Banks and Financial Institutions, Non-Banking relative standing of an entity with regard to adoption
Finance Companies (NBFCs) and of corporate governance practices
Housing Finance Companies (HFCs)

Infrastructure Sector Rating

5 Issuer Rating

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Infrastructure Sector Ratings includes
the ratings assigned to debt programs of issuers in
the power, roads, telecommunications and other
such infrastructure - related sectors
An Issuer Rating is an opinion on an issuer's
general capacity to fulfill its financial obligations and
is, in principle, assigned to all issuers
 Types of Credit Rating

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Mutual Fund Rating Insurance Sector Rating
A mutual fund rating is usually a measure of An insurance sector rating is an opinion regarding

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a fund's historical risk-adjusted performance over the financial strength of an insurance company. An
different time frames compared with the funds in insurance company’s credit rating indicates its
the same category ability to pay policyholders’ claims

Project Finance Rating

Project Finance Ratings is an opinion formed after
9 Public Finance Rating
Public Finance Ratings cover sovereign and sub-

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a detailed risk analysis of the projects undertaken sovereign entities, State governments and local
by an entity bodies like municipal corporations, municipal
councils and area development agencies

SME Rating
SME Rating indicates the relative level of 11 Structured Finance Rating
Structured Finance Ratings are opinion on the

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creditworthiness of an SME (Small & Medium Size likelihood of the rating structured instrument
Enterprises) entity, adjudged in relation to servicing its debt obligations in accordance with the
other SMEs terms