Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.

Credit ratings: Important things to know

​What is a credit rating?
1/5

​What is a credit rating?

Credit rating is a symbol that denotes the creditworthiness of the security being rated. AAA is the highest whereas D stands for Default.

ThinkStock Photos
​Which securities are given credit ratings?
2/5

​Which securities are given credit ratings?

Credit ratings are assigned to fixed income securities such as corporate bonds, fixed deposits, commercial paper, certificates of deposits and municipal bonds, as well as bank loans of companies.

ThinkStock Photos
​Who can give these ratings?
3/5

​Who can give these ratings?

Credit ratings can be provided only by specialised organisations that have been approved and authorised by Sebi. Some of the rating agencies are CRISIL, ICRA, CARE etc.

BCCL
​What happens after the security has been rated?
4/5

​What happens after the security has been rated?

Once assigned and published, the credit rating is made public and is available free of cost.

ThinkStock Photos
​What does the credit rating measure?
5/5

​What does the credit rating measure?

A credit rating indicates the likelihood of timely payment of interest and principal by the rated security and is a measure of credit risk or risk of default.

(The content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)

ThinkStock Photos
X
User

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service