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Credit Rating Process and Methodology By: Dimple Agrawal (Institute of Management Studies, Indore) What is a credit rating? Credit rating is an alphanumeric symbol that provides the opinion about the safety and creditworthiness of an entity or an instrument. It gives a comprehensive picture of the risk associated with the financial instrument or the issuer, taking into consideration the past performances, present projects and future prospects. Credit rating agencies use both qualitative and quantitative data in analysing and evaluating the creditworthiness of borrowers.
Credit Evaluation Processes
