Description
the products, services, rating process of credit rating agencies like ICRA, CARE, Dun & Bradstreet (D&B), CRISIL.
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The ICRA Ltd. Has been promoted by IFCI at New
Delhi. It is an independent company Ltd by shares
with an authorised share capital of Rs.10 crore
against 5 crore is paid up.
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IFCI holds 26%of the share capital & 74% is contributed by UTI, LIC,GIC,PNB,CBI, Bank of Baroda, UCO Bank & HDFC Ltd.
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To provide information & guidance to institutional &
individual investor.
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To enhance the ability of the borrower/issuers to
access the money market & the capital market for
large volume of resources from investing public.
?
To assist the regulators in promoting the transparency in the financial market.
?
?
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Rating Services Information services Advisory Services
The other Services in the area of credit rating include following………..
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Credit Assessment General Assessment Bank Lines of Credit Rating
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Credit Assessment For Small Scale & Medium Scale
Industries.
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Insurance Company Paying Rating
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CARE Ltd. Is a credit rating & information services company promoted by IDBI jointly with investment institutions, banks & financial companies. The
company started is operation in October 1993 &
announced its Ist rating in 1993.
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Credit Rating Information Services Equity Research
Other Services Includes….. • CARE Loan Rating • Credit Analysis Rating • Interest Rate Structure Model
Long term debt instruments-Rating Symbols
CARE AAA CARE AA CARE A CARE BB CARE B CARE AAA CARE AA CARE A CARE BB CARE C
: : : : : : : : : :
Highest Safety High Safety Adequate Safety Inadequate Safety High Risk Highest Safety High Safety Adequate Safety Inadequate Safety High Risk
For medium term debt instruments-Rating Symbols
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The first credit agency floated on January 1, 1988. It was jointly started by ICICI and UTI with an equity capital of 4 crores. CRISIL is India's leading rating agency, and is the fourth largest in the world. With over a 60% share of the Indian Ratings market, CRISIL Ratings is the agency of choice for issuers and investors.
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Ratings:- CRISIL's rating experience covers more than 37000
entities, including 17,000 small and medium enterprises (SMEs). As on December 31, 2010, we had more than 12,000 ratings (including over 6000 SMEs) outstanding.
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Global Research and Analytics – Irevna is the world's
top-ranked Knowledge Process Outsourcing firm. It supports the world's leading commercial and investment banks, insurance companies, corporations, consulting firms, private equity players and asset management firms.
?
Research:- Its comprehensive research offerings covering
economy, industry, companies CRISIL Research meets the requirements of more than 750 Indian and global clients. It also provides incisive, customised research
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Capital Markets:- It Provides detailed perspective covering
both debt and equity markets and also covering mutual funds services. Infrastructure Advisory:- It provides practical and innovative solutions to governments, donor funded agencies and leading organizations in over 20 emerging economies across the world. CRISIL Risk Solutions:- It provides comprehensive risk management services to banks, financial institutions, and corporates across all areas of risk including: credit, market and operational. In addition to providing innovative software products, it also extends consultancy services and analytical insights, which are focused on helping customers become Basel II-compliant.
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Dun & Bradstreet the world's leading source of global business information, knowledge and insight, has been enabling companies to Decide with Confidence for over 168 years. D&B's global commercial database contains more than 160 million business records. D&B featured on FORTUNE Magazine's Most Admired Companies Industry List for four consecutive years (2006 -2009), ranking first in the Financial Data Services category.
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D&B’s Indian operations started in 1995 and the company has offices in Mumbai, Delhi, Chennai, Bangalore, Kolkata, Hyderabad and Ahmedabad. Dun & Bradstreet Information Services India Pvt. Ltd. (D&B India) offers a wide suite of information solutions and its services are used extensively by banks, financial institutions, multinationals, corporate entities, public sector undertakings, exporters and importers.
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D&B Risk Management Solutions
rovides organizations with data and insight to increase profitability while mitigating risk, thus helping them gain deeper insights into customer performance, optimize cash flows and understand potential business partners before entering into transactions. D&B Sales & Marketing Solutions:-A suite of services that help businesses analyze markets, locate prospects and manage customer relationships. D&B Learning Solutions:-Helps businesses improve their competitiveness by facilitating their executives to excel, grow and succeed through innovative, high quality, comprehensive training & education programs. D&B Economic Analysis Group:-Helps businesses derive pragmatic and solution-oriented analyses of strategic economic and business developments, thereby aiding informed decision making.
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D&B Research & Advisory Services:- Leverages D&B's experience of
working with small businesses and its proven expertise in the areas of Risk
Management, Economic & Sector Research and Financial Research to provide customized solutions to its clients.
?
D&B Export Marketing Solutions:- Helps exporters reach out to potential overseas buyers; understand existing customers better and gain critical competitive intelligence.
?
D&B Data Consultancy Practice:- Helps businesses convert consumer specific marketing information into decision ready insight.
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CRISIL's ratings process is designed to ensure that all ratings are based
on the highest standards of independence and analytical rigour.
?
From the initial meeting with the management to the assignment of the rating, the rating process normally takes three to four weeks. However,
CRISIL has sometimes arrived at rating decisions in shorter
timeframes, to meet urgent requirements. The process of rating starts with a rating request from the issuer, and the signing of a rating
agreement. CRISIL employs a multi-layered, decision-making process
in assigning a rating.
Assessing Credit Quality
Business Risk Analysis
Financial Risk Analysis
Management Philosophy/ Strategy
Project Risk Analysis
Industry Risk ? Government Policies ? Market Position ? Operating Efficiency ? Technology ? Access to resources ? Level of integration ? Human resources ? Research and development ? Capacity utilization and efficiency
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Accounting quality Adequacy of cash flow Financial Flexibility
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CRISIL evaluation of a company management entail understanding the goal, philosophies, and strategy that drive the company business and financial performance. An evaluation involves several aspects such as understanding the organizational and reporting structure, management experience and track record the level of commitment and integrity of its personnel and the adequacy of its planning and control system.
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In the case of companies implementing a project, CRISIL evaluates the risk associated with that projects and factors in these risks while assigning the overall rating. Implementation risk such as time and cost overrun and technology risk and the impact of these on the project viability, and funding risk in term of the project’s capital structure and funding arrangement are also evaluated.
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Qualitative Analysis – Industry risk; Operating environment; Market position; Management, Accounting and Corporate governance Quantitative Analysis – Earnings and cash flow, Capital structure and Financial flexibility Earning Measures – Analysis of EBITDA, EBITDAR, After tax cash flows, Net free cash flows, Coverage ratios, EBITDA/Gross interest expense, EBITDA/Cash interest expense Leverage Measures – Debt/EBITDA (Cash leverage) and Net debt/Equity (Gearing) Profitability Analysis – Analysis of EBITDA/Operating income and Return on equity/ Return on capital employed
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Sources of additional certification
?
? ?
Increase the investor population
Encourages financial Discipline Merchant bankers job made easy
?
? ? ?
Foreign collaborations made easy
Benefits the industry as a whole Low cost of borrowing Rating as a marketing tool
THANK YOU…
doc_784367319.pptx
the products, services, rating process of credit rating agencies like ICRA, CARE, Dun & Bradstreet (D&B), CRISIL.
?
The ICRA Ltd. Has been promoted by IFCI at New
Delhi. It is an independent company Ltd by shares
with an authorised share capital of Rs.10 crore
against 5 crore is paid up.
?
IFCI holds 26%of the share capital & 74% is contributed by UTI, LIC,GIC,PNB,CBI, Bank of Baroda, UCO Bank & HDFC Ltd.
?
To provide information & guidance to institutional &
individual investor.
?
To enhance the ability of the borrower/issuers to
access the money market & the capital market for
large volume of resources from investing public.
?
To assist the regulators in promoting the transparency in the financial market.
?
?
?
Rating Services Information services Advisory Services
The other Services in the area of credit rating include following………..
? ? ?
Credit Assessment General Assessment Bank Lines of Credit Rating
?
Credit Assessment For Small Scale & Medium Scale
Industries.
?
Insurance Company Paying Rating
?
CARE Ltd. Is a credit rating & information services company promoted by IDBI jointly with investment institutions, banks & financial companies. The
company started is operation in October 1993 &
announced its Ist rating in 1993.
? ? ?
Credit Rating Information Services Equity Research
Other Services Includes….. • CARE Loan Rating • Credit Analysis Rating • Interest Rate Structure Model
Long term debt instruments-Rating Symbols
CARE AAA CARE AA CARE A CARE BB CARE B CARE AAA CARE AA CARE A CARE BB CARE C
: : : : : : : : : :
Highest Safety High Safety Adequate Safety Inadequate Safety High Risk Highest Safety High Safety Adequate Safety Inadequate Safety High Risk
For medium term debt instruments-Rating Symbols
? ? ?
?
The first credit agency floated on January 1, 1988. It was jointly started by ICICI and UTI with an equity capital of 4 crores. CRISIL is India's leading rating agency, and is the fourth largest in the world. With over a 60% share of the Indian Ratings market, CRISIL Ratings is the agency of choice for issuers and investors.
?
Ratings:- CRISIL's rating experience covers more than 37000
entities, including 17,000 small and medium enterprises (SMEs). As on December 31, 2010, we had more than 12,000 ratings (including over 6000 SMEs) outstanding.
?
Global Research and Analytics – Irevna is the world's
top-ranked Knowledge Process Outsourcing firm. It supports the world's leading commercial and investment banks, insurance companies, corporations, consulting firms, private equity players and asset management firms.
?
Research:- Its comprehensive research offerings covering
economy, industry, companies CRISIL Research meets the requirements of more than 750 Indian and global clients. It also provides incisive, customised research
?
Capital Markets:- It Provides detailed perspective covering
both debt and equity markets and also covering mutual funds services. Infrastructure Advisory:- It provides practical and innovative solutions to governments, donor funded agencies and leading organizations in over 20 emerging economies across the world. CRISIL Risk Solutions:- It provides comprehensive risk management services to banks, financial institutions, and corporates across all areas of risk including: credit, market and operational. In addition to providing innovative software products, it also extends consultancy services and analytical insights, which are focused on helping customers become Basel II-compliant.
?
?
?
?
?
Dun & Bradstreet the world's leading source of global business information, knowledge and insight, has been enabling companies to Decide with Confidence for over 168 years. D&B's global commercial database contains more than 160 million business records. D&B featured on FORTUNE Magazine's Most Admired Companies Industry List for four consecutive years (2006 -2009), ranking first in the Financial Data Services category.
?
?
D&B’s Indian operations started in 1995 and the company has offices in Mumbai, Delhi, Chennai, Bangalore, Kolkata, Hyderabad and Ahmedabad. Dun & Bradstreet Information Services India Pvt. Ltd. (D&B India) offers a wide suite of information solutions and its services are used extensively by banks, financial institutions, multinationals, corporate entities, public sector undertakings, exporters and importers.
?
D&B Risk Management Solutions
rovides organizations with data and insight to increase profitability while mitigating risk, thus helping them gain deeper insights into customer performance, optimize cash flows and understand potential business partners before entering into transactions. D&B Sales & Marketing Solutions:-A suite of services that help businesses analyze markets, locate prospects and manage customer relationships. D&B Learning Solutions:-Helps businesses improve their competitiveness by facilitating their executives to excel, grow and succeed through innovative, high quality, comprehensive training & education programs. D&B Economic Analysis Group:-Helps businesses derive pragmatic and solution-oriented analyses of strategic economic and business developments, thereby aiding informed decision making.?
?
?
?
D&B Research & Advisory Services:- Leverages D&B's experience of
working with small businesses and its proven expertise in the areas of Risk
Management, Economic & Sector Research and Financial Research to provide customized solutions to its clients.
?
D&B Export Marketing Solutions:- Helps exporters reach out to potential overseas buyers; understand existing customers better and gain critical competitive intelligence.
?
D&B Data Consultancy Practice:- Helps businesses convert consumer specific marketing information into decision ready insight.
?
CRISIL's ratings process is designed to ensure that all ratings are based
on the highest standards of independence and analytical rigour.
?
From the initial meeting with the management to the assignment of the rating, the rating process normally takes three to four weeks. However,
CRISIL has sometimes arrived at rating decisions in shorter
timeframes, to meet urgent requirements. The process of rating starts with a rating request from the issuer, and the signing of a rating
agreement. CRISIL employs a multi-layered, decision-making process
in assigning a rating.
Assessing Credit Quality
Business Risk Analysis
Financial Risk Analysis
Management Philosophy/ Strategy
Project Risk Analysis
Industry Risk ? Government Policies ? Market Position ? Operating Efficiency ? Technology ? Access to resources ? Level of integration ? Human resources ? Research and development ? Capacity utilization and efficiency
?
? ? ?
Accounting quality Adequacy of cash flow Financial Flexibility
?
?
CRISIL evaluation of a company management entail understanding the goal, philosophies, and strategy that drive the company business and financial performance. An evaluation involves several aspects such as understanding the organizational and reporting structure, management experience and track record the level of commitment and integrity of its personnel and the adequacy of its planning and control system.
?
?
In the case of companies implementing a project, CRISIL evaluates the risk associated with that projects and factors in these risks while assigning the overall rating. Implementation risk such as time and cost overrun and technology risk and the impact of these on the project viability, and funding risk in term of the project’s capital structure and funding arrangement are also evaluated.
?
?
?
?
?
Qualitative Analysis – Industry risk; Operating environment; Market position; Management, Accounting and Corporate governance Quantitative Analysis – Earnings and cash flow, Capital structure and Financial flexibility Earning Measures – Analysis of EBITDA, EBITDAR, After tax cash flows, Net free cash flows, Coverage ratios, EBITDA/Gross interest expense, EBITDA/Cash interest expense Leverage Measures – Debt/EBITDA (Cash leverage) and Net debt/Equity (Gearing) Profitability Analysis – Analysis of EBITDA/Operating income and Return on equity/ Return on capital employed
?
Sources of additional certification
?
? ?
Increase the investor population
Encourages financial Discipline Merchant bankers job made easy
?
? ? ?
Foreign collaborations made easy
Benefits the industry as a whole Low cost of borrowing Rating as a marketing tool
THANK YOU…
doc_784367319.pptx