2011-04-18

Importance of Credit Rating

It is an opinion formed by credit evaluators of a borrower’s potential to repay debt and trusting him in return

Importance of Credit Rating

Through Credit Rating, we estimate credit worthiness of an individual, corporation or a country. It is an opinion formed by credit evaluators of a borrower’s potential to repay debt. Every rating grade comes with its possibility of default, which in turn assists investor/lender to take informed investment decision. Various financial, non-financial parameters, past credit history and future outlook are determined before coming to a rating. There are various types of ratings viz. Issuer Rating/ Obligor Rating, Bank loan Rating, Issue based Rating, Project Rating etc. Based on type of borrower/issuer, Ratings can be classified as Individual Rating, Corporate Rating, Bank/Financial Institutions Rating, SME Rating, MFI Rating etc.

 

A rating procedure generally involves

  • Rating request
  • Submission of application, relevant documents and fees
  • Site visit and management interview
  • Rating assessment procedure
  • Rating committee, rating decision
  • Rating dissemination

SMERA

 

SMERA is the country's first Rating agency primarily focusing on the Indian Micro, Small and Medium Enterprise (MSME) segment.

 

SMERA's primary objective is to provide Ratings that are comprehensive, transparent and reliable. This would facilitate greater and easier flow of credit from the banking sector to MSMEs.

 

1.   SMERA Credit Ratings provides a comprehensive and independent third-party evaluation of the overall condition of the applicant. Currently, SMERA offers Obligor Ratings which takes into account the financial and non-financial factors that have bearing on the credit worthiness of the applicant.

 

2.   At present, SMERA offers following products:

  • MSME Rating
  • Greenfield & Brownfield Grading
  • Microfinance Institutions (MFI) Rating
  • Green Rating
  • Risk Management  Solutions

 

3.    SMERA Rating’s intention is to enhance the market standing of the applicant amongst lenders, trading partners and prospective customers.

Related opportunities
  • Scoopy Scrub was founded in 2007 and is headquartered in..
    Locations looking for expansion Uttarakhand
    Establishment year 2007
    Franchising Launch Date 2023
    Investment size Rs. 2lakh - 5lakh
    Space required 200
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Haldwani Uttarakhand
  • Welcome to The Shri Ram Wonder Years Preschool, where we..
    Locations looking for expansion Delhi
    Establishment year 2008
    Franchising Launch Date 2022
    Investment size Rs. 1 Cr. - 2 Cr
    Space required 8000
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Lingerie & Innerwear
    ONN is the new Premium Men Inners/ Athleisure Brand from..
    Locations looking for expansion West bengal
    Establishment year 2022
    Franchising Launch Date 2022
    Investment size Rs. 10lakh - 20lakh
    Space required 200
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Saltlake West bengal
  • Precious Jewellery
    DP Jewellers is all about trust, purity and transparency. It..
    Locations looking for expansion Madhya pradesh
    Establishment year 1950
    Franchising Launch Date 2022
    Investment size Rs. 1 Cr. - 2 Cr
    Space required 2400
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Ratlam Madhya pradesh
Insta-Subscribe to
The Franchising World
Magazine
tfw-80x109
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
email
mobile
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities

Free Advice - Ask Our Experts

pincode
;
ads ads ads ads