Rating of the enterprise as a determinant of decision making in a capital market

Abstract

The article substantiates the relationship between the quality of ratings of securities issuers and the efficiency of the capital market. The influence of the rating as a trigger and the probability of default on the market value of shares and bonds of the enterprise are found out. It is determined that the presence of the rating increases the demand for corporate bonds and other securities of enterprises. It directly influences the possibilities of attracting financial resources of the enterprise and their price. Due to the rating, the cost of investors for the collection and analysis of information on investment objects is reduced. The analysis of methodology rating on the websites of the leading Ukrainian rating agencies was carried out. The insufficient level of transparency of rating agencies concerning the issues of methodology rating was found out. This complicates the assessment of the quality of ratings and their objectivity. It is proved that rating assessments affect not only a separate segment of the securities market, but also serve as a means for improving the information efficiency of the entire capital market. Therefore, ranking can be defined as a means of improving the information efficiency of the capital market. The place of controlling and corporate management for improvement of credit ratings of enterprises is determined.