LESSON OUTLINE
– Introduction
– Concept & Overview
– Purposes
– Uses of Credit Rating
– Factors for Success of a Rating System
– Important Issues in Credit Rating
– Rating Methodologies
– Rating Process
– Regulatory Framework
– SEBI (Credit Rating Agencies) Regulations,
1999
– Transparency and Disclosure Norms for
CRAs
– Internal Audit of CRAs
– Rating Symbols & Definitions
– IPO Grading
LEARNING OBJECTIVES
Credit Rating is a symbolic indication of the current opinion regarding the relative capability of a corporate entity to service its debt obligations in time with reference to the instrument being rated. It enables the investor to differentiate between debt instruments on the basis of their underlying credit quality. In determining a rating, both qualitative and quantitative analyses are employed. The judgment is qualitative in nature and the role of the quantitative analysis is to help make the best possible overall qualitative judgment or opinion. This lesson is designed to give a comprehensive, regulatory framework of Credit Rating Agencies (CRAs). After going through this lesson, the student will be able to understand the concept, uses, purpose, rating methodologies of CRAs, the provisions stipulated in the regulations, guideline relating to CRAs, basic understanding of IPO grading, Internal Audit of CRA by a Practicing Company Secretary etc.
0 Comments