Credit Rating Advisory is an in-depth analysis of the financial history of borrowing and lending along with credit worthiness of an organization or an individual. It is extracted and analyzed from the record of statements of assets and liabilities of an organization or an individual with the sole aim to verify their ability to meet the debt obligations.

At Maxigain Capital, you will get expert guidance and support in below services under the radar of credit rating advisory:

• Credit Risk Assessment
• Bank Loan Rating Advisory
• Reduce Interest Cost
• Open New Borrowing Avenues

Maintaining a good credit rating is extremely critical for any organization or individual to be able to secure a loan from the lending institution, investors or any other financial institutions. A good credit rating:

• multiplies the ability to repay the debt
• lowers the interest rates
• helps figure out the projected profits and revenues
• supports with the timely availability of funds
• provides a clear and concise view on current performance
• casts the limelight on the image to increase visibility among the lenders, investors etc.
• boosts the market evaluation 
• positively attracts clients’ attention

Credit rating is a qualitative and quantitative system of assessment that decides the capability of a prospective debtor to pay back a loan, both interest over time, and the principal at the end. Credit rating is not a recommendation tool to buy, sell or acquire a debt. Credit rating is rather a facility that offers additional inputs to the investor based on the analysis of which the investor is free to make investment decisions

We understand the importance of a good credit rating background right from the beginning. That is why we offer our expertise in multiple segments such as:

• Credit Risk Assessment
• Bank Loan Rating Advisory
• Reduce Interest Cost
• Open New Borrowing Avenues

With expert assistance, no hidden charges, affordable pricing, and a team of experts laced with a century-worth of experience makes us stand tall in the crowd of credit rating advisory firms.  Get in touch with us today to sort out your tomorrow!

Credit rating advisory firms, such as Maxigain Capital, come with plenty of benefits. We can give you a deep analysis of:

• Lending a borrowing history
• Past debt
• Payment history
• Financial statements
• Level and type of current debt

What’s more? We can offer some of the best services as a leading credit rating advisory firm:

• We can offer qualitative and quantitative analysis
• We can help investors come up with informed decisions
• We know how to attract investors
• We specialize in improving the presence of the company/individual across the market
• We provide 24/7 support in raising capital

A CRA provides supportive documents in terms of future debt repayments by the borrower. A CB provides supportive documents in terms of past debt repayments by the borrower.

Yes. It is mandatory to sign a rating agreement. 

Credit rating is assigned after an in-depth and detailed assessment of a company’s financials including its strengths and weaknesses. The process also requires a comprehensive evaluation of the market along with macro-economic, regulatory and political environment.

Yes. You can utilize your credit ratings to invest in debt mutual funds.

Below are the types of debt funds who accept credit ratings as per SEBI:

• Corporate Bond Fund: Minimum 80% investment in corporate bonds; only in AA+ and above rated corporate bonds
• Credit Risk Fund: Minimum 65% investment in corporate bonds; only in AA and below rated corporate bonds
• Gilt Fund: Minimum 80% in G-secs across maturities
• Gilt Fund with 10-year Constant Duration: Minimum 80% in G-secs in the way that the Macaulay duration of the portfolio equals 10 years

Credit ratings are assigned to companies or governments whereas credit scores symbolize numbers assigned to individuals expressing their ability to pay back loans, debt, rent etc.

Long-term credit ratings have below default probabilities:

• A category: Lower than 0.25% chance of default 
• B category investment grade: 0.25% - 17.5% chance of default
• B category speculative grade: 7.5% - 20% chance of default
• C category: 20% - 34% chance of default
• D category: In default

A category: AAA / AAa / A1+ or similar carry the best credit quality with the minimal chance of default. The category has subsequent lower ratings like AA, A etc.

B category: BBB / Baaa or similar carry the next best credit quality and a higher chance of default in comparison to A category

C category: CCC/ Caaa or similar carry the next best credit quality and a higher chance of default in comparison to B category

D category: D / RD / SD or similar denotes that these bonds are in default

If all the requisite documents are submitted to the agency, then it may take up to a month to get assigned with the credit rating.

No. Credit rating symbols vary from debt to debt. For example, short-term and long-term debts have different credit ratings.

There are a number of factors that can affect an organization’s or an individual’s credit rating:

• Lending a borrowing history
• Past debt
• Payment history
• Financial statements
• Level and type of current debt