Home / Main News / What is credit rating ? How is it important ?

What is credit rating ? How is it important ?

September 25, 2018

Credit rating is an analysis of the credit risks associated with a financial instrument or a financial entity. It is a rating given to a particular entity based on the credentials and the extent to which the financial statements of the entity are sound, in terms of borrowing and lending that has been done in the past.

Usually, is in the form of a detailed report based on the financial history of borrowing or lending and credit worthiness of the entity or the person obtained from the statements of its assets and liabilities with an aim to determine their ability to meet the debt obligations. It helps in assessment of the solvency of the particular entity. These ratings based on detailed analysis are published by various credit rating agencies like Standard & Poor's, Moody's Investors Service, and ICRA, to name a few.

About admin

Check Also

MetLife Nepal Launches Two Innovative Digital Solutions for Customers

As MetLife celebrates its 17th anniversary in Nepal, the global insuerer unveiled two new digital …

Leave a Reply

Your email address will not be published. Required fields are marked *

× Success! This alert box could indicate a successful or positive action.