Credit Rating
Also known as: Credit Score, Rating, Risk Assessment
Professional assessment of an issuer's ability to repay debt obligations, expressed through standardized rating scales.
Detailed Explanation
Credit Rating is an independent evaluation by rating agencies (CRISIL, ICRA, CARE, India Ratings) of an issuer's creditworthiness. Ratings range from AAA (highest safety) to D (default). For corporate FDs, AAA-rated issuers have the lowest default probability, while lower-rated issuers carry higher risk but offer better returns. Ratings are opinions, not guarantees, and can change based on the issuer's financial performance and market conditions.
Related Calculators
Related Terms
Corporate FD
Fixed deposits issued by companies and NBFCs offering higher interest rates than bank FDs but carrying credit risk.
Credit Risk
The risk that a borrower or issuer may default on interest payments or principal repayment.
Due Diligence
Comprehensive investigation and analysis of an investment opportunity to assess risks and verify claims.