A credit score represents the creditworthiness of the borrower. Based on the credit score, a lender determines whether the borrower can repay the loan amount or not.
- Usually, issues that are rated AAA are understood to be safest. Moreover, experts suggest that retail investors shouldn’t dabble into issues that are rated below AA/AA+.
- Apart from looking at the ratings, investors should also consider the outlook of the company as per the rating agencies.
- Apart from looking at the credit profile of the NCD issuer, investors should also check the quality of the credit rating agency itself.
Credit Rating Agencies in India
- Brickwork Ratings India Pvt Ltd
- CRISIL Ltd
- ICRA Limited
- India Ratings and Research Pvt Ltd
- Infometrics Valuation and Rating Pvt Ltd
- SMERA Ratings Limited