Accountability of Credit Rating Services - A Study

A rating is an opinion on the future ability and legal obligation of the issuer to make timely payments of principal and interest on a specific fixed income security. Credit Rating is a simple and easy to understand symbolic indicator of the opinion of a credit rating agency about the risk involved in a borrowing programme of an issuer with reference to the capability of the issuer to repay the debt as per terms of the issue. This is neither a general purpose evaluation of the company nor a recommendation to buy, hold or sell a debt instrument. The study is made with an empirical study and it includes field survey. A questionnaire schedule method was adopted to have the information from the actual as well as the potential customers of SSI units. The study has been conducted among the sample of 50 respondents. The opinions of the customers are the source of the conclusion. From the study it is clear that all customers preferred to get the credit rating from the ONICRA credit rating agency, which is very much important for each and every SSI units. It is powerful mode of business when the SSI gets credit rating to get financial assistance and to have better title.