Credit rating in India
Summary :
Table of Contents
- Introduction
- Present credit scenario in India
- The changes that have taken place
- Credit rating process
- The process of credit analysis
- Top Indian credit rating agencies
- SME Rating Agency of India Limited - SMERA
- Credit Information Companies (Regulation) Act 2005
- The importance and need of CIBIL
- The role of credit ratings and the changes it has bought
- Conclusion
Abstract
The credit market in india has been growing steadily since the advent of the reforms process at the beginning of the nineties. Indian credit Market is the third largest in the world, after Japan and South Korea, in terms of primary issues of debt. Historically when a loan was given or a paper/note was issued, the associated credit/Lending risk remained on the Lenders' Balance Sheet or with the buyer of the credit till it was repaid. Treated as cost of doing the business. Today at least in the OECD countries ( including Japan ), Loan and risk are traded. Thus a credit chain has been created. rating Agencies study Organizations, Industries, Sector and the macro environment almost the same way as Equity Analysts do with a few key differences.
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