Credit rating agencies in India
What are Credit rating agency? Credit rating is a numerical representation of the creditworthiness of an individual or a business. The credit rating is a key aspect that makes or breaks a loan application. The credit rating/score acts as an indicator stating if the borrower has defaulted on loan payments before and if he is worth trusting with the new loan.
How Credit rating agencies work? Credit rating agencies analyse an organisation, individual, or entity and assign ratings to it. These agencies have the authority to rate companies, state governments, non-profit organisations, countries, securities, local government bodies, and special purpose entities. Many factors are considered while settling with a rating such as financial statements, type of debt, lending and borrowing history, repayment capability, past credit repayment behaviour, and more. Each of these factors contributes to a specified share in computing the end result, credit score.
Credit Rating agencies in India
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