USES OF CREDIT RATING

USES OF CREDIT RATING 

For users –

(i) Aids in investment decisions.

(ii) Helps in fulfilling regulatory obligations.

(iii) Provides analysts in Mutual Funds to use credit ratings as one of the valuable inputs to their independent evaluation system. 

For issuers –

(i) Requirement of meeting regulatory obligations as per SEBI guidelines.

(ii) Recognition given by prospective investors of providing value to the ratings which helps them to raise debt / equity capital.

The rating process gives a viable market driven system which helps individuals to invest in financial instruments which are productive assets.

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