Emerging Issues in Credit Rating:A Review

P. Srikanth; Ashok H. Chachadi

Emerging Issues in Credit Rating:A Review

Affiliations
1 Department of Management Studies, P.E.S. Institute of Technology, Bangalore, India
2 Department of Management, Kousali Institute of Management Studies, Dharwad, India

Abstract
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Credit rating is a useful tool for the investors as it helps them to minimise or avoid default risk and also for the issuers as a marketing tool. There are many other merits which enhance the utility of credit rating. But at the same time, there are certain critical issues which are subject to lot of discussions and researches.

Tlte present paper discusses utility of credit ratings for the players in the process. It deals with the impact of credit rating announcements and also with the information content in the credit rating symbols. The paper finally identifies certain issues and studies each such issue in the light of empirical evidence.