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Credit Risk is perhaps the most critical risk that debt market investors/lenders are exposed to on day-to-day basis. In a dynamic world a professional credit rating agency can provide substantial value to the markets by providing independent, timely and insightful credit opinions on various securities in the debt markets.
Investor confidence would however remain the touchstone on which credible rating agency can exist. In a maze of investment options, a professional risk opinion can really serve as a valuable input to investors to help them find the right way.
We are committed to provide professional risk opinions and always be the preferred choice of investors. CARE’s services are of immense value to the following:
| Investors: |
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To effectively monitor and manage investments in debt instruments
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To draw their credit risk policies and assess the risk premium offered by the market on the basis of credit ratings
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| Issuers of Debt Instruments: |
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For wide access to funds
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For pricing and timing of issues correctly
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For financial flexibility
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| Financial Intermediaries: |
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Useful in lending and investments
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| Business Counterparties: |
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For establishing business relationships
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For opening letters of credit, awarding contracts
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For entering into collaboration agreements
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| Regulators: |
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To determine eligibility criteria and entry barriers for different types of securities
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To monitor financial soundness of organisations and promote efficiency in the debt market
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In general, the rating services by CARE increase the transparency of the financial system, leading to a healthy development of the capital market.
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