Credit Rating Homework Help

Credit Rating

To ensure timely payment of interest and redemption of principal by a borrower, all debentures must be compulsorily rated by one or more of the four credit rating agencies, namely, Crisil, Icra, Care and FITCH India.

Claim on Income and Assets

The payment of interest and repayment of principal is a contractual obligation enforceable by law. Failure/default would lead to bankruptcy of the company. The debenture-holders on come and assets ranks pari passu with other secured debt and higher than that of shareholders preference as well as equity.

Posted by: andy

Share This