DEBT RATING INSTRUMENTS

GAYATHRI P

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.

CREDIT RATING AGENCIES IN INDIA

• CRISIL

• ICRA

• CARE

**CRISIL RATINGS IS INDIA'S LEADING RATING AGENCY.

**PIONEERED THE CONCEPT OF CREDIT RATING IN INDIA

IN 1987

• 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.

• •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.

GLOBAL RATING AGENCIES

• Credit rating is a highly concentrated industry, with the "Big Three" credit rating agencies controlling approximately 95% of the ratings business.

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.

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.

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