Question
Credit Rating

Answer

  • Credit rating is an estimate of the ability of the organization to fulfill its financial commitments.
  • Every company has to get a credit rating of its deposits through a Credit Rating Agency.
  • The Credit Rating Agency considers the net worth of the company, liquidity position, ability to repay deposits on time, etc., and accordingly gives a rating.
  • The rating shall be obtained every year during the tenure of the deposits.

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