Credit Rating

Credit rating estimates the ability of an individual or a company to pay back a loan. Based upon the credit history and repayment details as well as the availability of assets and extent of liabilities of the applicant, it is determined whether or not a loan should be given to the applicant and the interest rate to be charged. For issuers of debt instruments, it helps the investors determine the likelihood that the bond issuer will pay coupon payments in a timely fashion and the initial investment at maturity.

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