Important Details you should know about Credit Rating Agencies

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Credit rating is the technique of credit risk valuation for the corporate debt instruments reflection borrower's expected capability and inclination to pay interest and principle in a timely manner. A credit rating agency  (CRA, also called a ratings service) is an entity which assesses the ability and willingness of the issuer company for timely payment of interest and principal on a debt instrument. John Moody first introduced this concept in the year 1909.

Methodology : A ration exercise is done at the request of the company. It applies to a particular debt obligation of the company and is not a general purpose evaluation of the company. As we have grades in schools, the rating given by credit rating agencies is denoted by a simple alphanumeric symbol, for e.g. AA+, A-, etc.

Here the Plus and minus symbols are used to indicate finer distinctions within a rating category. The minus symbol associated with ratings has no negative connotations. In fact, ratings in a higher rating category such as ‘AA-‘ are stronger than ratings in a lower rating category such as ‘A+‘. Below is the list of important credit rating agencies which will be helpful in the Banking Awareness section of upcoming IBPS PO IV and Clerks IV Online Exams. Happy Reading :)

Important details of Credit Rating Agencies

Name of the Agency	Service	Established	Head Quarter	Head / Key People
Moodys Investor Service	Bond Market	1909	New York, USA City	Raymon W.MC Daniel Jr
Standard and Poor	Financial Services	1860	New York, USA City	Neeraj Sahai
Fitch rating	Financial Services	1913	New York City, USA & London, UK	Paul Taylor (CEO & President)
Credit Rating Information Services of India Ltd (CRISIL)	Research, Risk and Policy Advisory	1987	Mumbai, India	Ashu Suryash (MD & CEO)
Investment Information and Credit Rating Agency of India (ICRA)	Credit Rating and Financial Consulting	1991	Gurgaon, India	Naresh Takkar (CEO)
Credit Information Bureau India Ltd. (CIBIL)	Research, Risk and Policy Advisory	2000	Mumbai, India	Satish Pillai (MD & CEO)
CARE	Credit Rating, Risk	1993	Sion (East), Mumbai, India	O. V. Bundellu (Chairman)
SMERA (FOR msme’s)	Research, Risk & Policy advisor	2005	Mumbai, India	Sudesh Kumar (Chairman)
Brick work India	Research, Risk & Advisory	2007	Bangalore, India	Vivek Kulkarni (Chairman & CEO)

Read complete Banking Awareness study material for IBPS PO V and Clerks V Online Exams

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