OBJECTIVES OF CREDIT RATING

(i) Rating debt obligations of companies. 

(ii) Guiding investors regarding the risk of investment in a debt security as to timely repayment of interest obligations and principle amount. 

(iii) Creating awareness of the concept of credit rating amongst corporations, merchant bankers, brokers and regulatory authorities. 

(iv) It helps in the creation of environment that facilitates debt rating. 

(v) Inculcating a positive environment regarding investment in debt securities. 

(vi) Helps in creating confidence in the minds of investors. 

(vii) Enable the companies to be quality conscious regarding their securities and creating a positive pressure on them to fulfill their debt obligations.

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