A

Seminar presentation on
“CREDIT RATING”

Submitted by
Shilpa V. Kathare
Roll No. 25,
(MBA-IIYear, 3rd-Sem.)

Under The Guidance of

Mr. R. V. Tehra

Submitted To
School of Commerce & Management Sciences
S.R.T.M.University, Nanded.
Year:-2010-2011
CREDIT RATING
Introduction:-
 Since lot of companies are raising
money in the capital market and each
company proposed to raise capital
through different types of securities
and debt instruments, it is difficult for
the investors to judge which
investment is suffer and more reliable
investment opportunity.
Concept:-
 Credit rating reforms the isolated function
of credit risk evaluating and reflects
borrower’s accountability, expected
capability and inclination to pay interest
and principal in a time manner.
 The probability of timely repayment of
principal and interest by a borrower
company. The rating companies monitor
the rating given and modify and suitably.
Definition of Credit Rating:-
 Credit Rating:-
What Does Credit Rating Mean?
An assessment of the credit
worthiness of individuals and
corporations. It is based upon the
history of borrowing and repayment,
as well as the availability of assets
and extent of liabilities.
Definition:-
 Investopedia explains Credit
Rating:-

Credit is important since individuals

and corporations with poor credit will
have difficulty finding financing, and
will most likely have to pay more due
to the risk of default.
For Example:-