Abstract

A rating is essentially an evaluation tool used by analysts or rating agencies to assess the financial strength of any investment option. Specifically, a credit rating is a numerical assessment of the creditworthiness of a borrower, either in general terms or concerning a particular debt or financial obligation. Companies and governments are typically evaluated by credit rating agencies such as S&P Global, Moody’s, or CRISIL in India. These agencies are compensated by the entity seeking the credit rating for itself or one of its debt issues.

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