PPT on CRISIL FP Financial planing

8/13/2019 PPT on CRISIL FP Financial planing

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Prepared By:VANZARA FARHANA

VAISHNAV MEGHAL


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INTRODUCTION OF CREDIT RATING

CRISIL: Credit Rating Information Service Of IndiaLtd.

an evaluation of the credit worthiness of a

debtor determined by credit ratings agencies

DEFINITION:

An assessment of the credit worthiness of aborrower in general terms or with respect to aparticular debt or financial obligation.


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CREDIT RATING AGENCY IN

INDIACRISIL (CREDIT RATING INFO &SERVICE OF INDIA LTD.)

CARE (CREDIT ANALYSIS &RESEARCH LTD.)

ICRA (INVESTMENT INFO & CREDITAGENCY OF INDIA LTD.)

FITCH RATING INDIA PVT. LTD.


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ABOUT CRISIL A global analytical company Incorporated in 1987

Provides ratings, research, and risk and policyadvisory services.

India's 1stlargest.

Provider of high-end research to the world's largestbanks and leading corporations.

CRISIL's majority shareholder is Standard and Poor's(S&P)

rated 30,000 debt instruments, covering the entiredebt market

clients includes all the industry majors - 23 of the BSESensex constituent companies and 39 of the NSE Niftyconstituent companies,


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AIM OF CRISIL To assist both individual and institutional investors in

making investment decisions in fixed interestsecurities;

To guide the investors as to the risk of timely payment

of interest and principal on a particular debtinstrument;

To help the companies to raise funds from a largenumber of investors in larger amounts at a lesser cost;

To create awareness of the concept of credit ratingsamongst corporations, merchant bankers, brokers,regulatory authorities and help in creatingenvironment that facilitates the debt rating;

To provide regulators with a market-driven system inorder to ensure discipline and a healthy growth ofcapital markets.


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CRISIL Businesses

Ratings

Global Research & Analytics: (Irevna,Pipal Research)

Research

CRISIL Risk and Infrastructure Solutions(CRIS)


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CREDIT RATING METHODOLOGY

Business analysis: covers an analysis of industryrisk, market position in country, operatingefficiency of company & legal position.

Financial analysis: covers analysis of accounting

quality, earning protection, cash flow adequacy& financial flexibility.

Management evaluation: study track record ofmgmts capacity to overcome adversesituations, goals, philosophy & strategies.

Fundamental analysis: analysis of liquidity mgmt,assets quality, profitability and interest and taxsensitivity.


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TYPES OF RATING


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FUNCTION OF CRISIL

Credit Rating Service

Advisory Services

Research & InformationService


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Remarks Debenture FixedDeposit

StructuredObligation

Short-termSafety

HighestSafety

AAA FAAA AAA(So) P1(Verystrongsafety)

High Safety AA FAA AA(So) P2(Verysafety)

AdequateSafety

A FA A(So) P3(Adequate safety)

ModerateSafety

BBB - BBB(So) P4(Minimalsafety)

Inadequate

Safety

BB FB BB(So) P5(Default)

High Risk B FC B(So)

SubstantialRisk

C - C(So)

In default D FD D(So)


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PPT on CRISIL FP Financial planing

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