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Credit Rating Agency: A Tool against Financial Risk

Author(s):

Dr. Himanshu Mathur , Jayoti Vidyapeeth Woman�s University Jaipur; Sandeep Songara, Jayoti Vidyapeeth Woman�s University Jaipur; Shruti Mishra, Jayoti Vidyapeeth Woman�s University Jaipur; Laxmi Jangid, Jayoti Vidyapeeth Woman�s University Jaipur

Keywords:

Credit Rating, Investor, Banks, Risk

Abstract

Credit rating plays a significant role in financial market for investor, banks, financial institutions, and mutual fund etc. in reducing the asymmetrical information between different parties. Credit rating helps us to know the solvency power of borrowers which reduce the financial risk of the investor. The objective of this paper is to get in-depth knowledge of credit rating, credit rating agencies, and their ratings. The whole study is depends upon secondary data. The result of the study shows that due to credit rating, the chance of financial risk becomes low but on the other hand Investors should observe caution while investing their money and be aware themselves before taking their investment decisions.

Other Details

Paper ID: IJSRDV7I110199
Published in: Volume : 7, Issue : 11
Publication Date: 01/02/2020
Page(s): 140-142

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