creditratingagenc555ies-170117183828.pptx

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1. CREDIT RATING AGENCIES

2. TOPICS MEANING AND DEFINITION INTERNATIONAL AGENCIES REFERENCES

3. MEANING Credit rating agency means a body corporate which is engaged in the business of rating of securities offered by companies. The debt instruments rated by CRAs include government bonds, corporate bonds, CDs, municipal bonds, preferred stock, and collateralized securities, such as mortgage-backed securities and collateralized debt obligations.

4. DEFINITION OF CREDIT RATING According to CRISIL, credit rating is “an unbiased and independent opinion as to issuer’s capacity to meet its financial obligations. It does not constitute a recommendation to buy , sell or hold a particular security” According to Moodys , “ratings are designed exclusively for the purpose of grading bonds according to their investment qualities”

5. INTERNATIONAL AGENCIES MOODY’S INVESTORS SERVICES STANDARD AND POOR’S CORPORATION(S &P)

6. MOODY’S INVESTORS SERVICES John Moody founded the Moody’s agency at the beginning of the 20 th century. It undertakes the rating of wide range of debt related securities , international issues , commercial papers , etc. Both in USA and international markets. Other services include- assessing financial strength of insurance companies , mutual funds, banks , public utilities.

7. STANDARD AND POOR’S CORPORATION(S &P) One of the first credit rating institutions which has a history of 157 years, founded in the year 1860. Offers rating on wide range of debt securities , both in the US and overseas markets.

8. OTHER INTERNATIONAL AGENCIES Duff and Phelps Credit Rating Company Japan Credit Rating Agency Fitch Investors Service Thomason Bank Watch IBCA Ltd

9. REFERENCES FINANCIAL SERVICES TEXTBOOK FOR 4 TH SEMESTER B.COM BY DR.ANTONY THOMAS(M.G. UNIVERSITY)