Dr. Rajeev Jain - Credit Rating

Credit Ratings are based on analysis performed by experienced professionals who evaluate and interpret information from a multitude of sources; credit ratings provide a detailed opinion about a corporation’s credit risk. Credit ratings are one of several tools that investors can use when making decisions about purchasing bonds and other fixed income investments.

• Credit ratings are opinions about relative credit risk.
• Credit ratings are not investment advice, or buy, hold, or sell recommendations. They are just one factor investors may consider in making investment decisions.
• Credit ratings are not indications of the market liquidity of a debt security or its price in the secondary market.
• Credit ratings are not guarantees of credit quality or of future credit risk.

Comprehensive offerings include ratings for long-term instruments such as debentures/bonds and preference shares, structured obligations (including asset-backed securities) and fixed deposits; it also rates short-term instruments such as commercial paper programmes and short-term deposits. Through the years has continued to innovate and play the role of a pioneer in the development of the debt market. It has pioneered the rating of subsidiaries and joint ventures of multinationals and has rated several multinational entities, both start-up entities as well as players with a well established track record. Over the years, it has also developed several structured ratings for multinational entities based on Guarantees from the parent as well as Standby Letter of Credit arrangements from bankers. The rating agency has also developed a methodology for credit enhancement of corporate borrowing programmes through the use of partial guarantees. In essence, It is uniquely placed in its experience in understanding the extent of credit enhancement arising out of such structures