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    Question

    Consider the following statements regarding ‘Credit

    Rating’:  In India, credit rating agencies are registered with the RBI. Credit ratings highlight the risk variables coupled with credit worthiness. There are six credit rating agencies registered under RBI. Which of the statements given above is/are correct?
    A I only Correct Answer Incorrect Answer
    B II only Correct Answer Incorrect Answer
    C III only Correct Answer Incorrect Answer
    D I and II only Correct Answer Incorrect Answer
    E II and III only Correct Answer Incorrect Answer

    Solution

    Credit rating agencies are registered under the Security and Exchange Board of India (SEBI). There are six credit rating agencies registered under SEBI namely, CRISIL, ICRA, CARE, SMERA, Fitch India and Brickwork Ratings. With credit rating, lenders get an idea about the credit worthiness of an individual or company (who is borrowing the money) and the risk factor attached with them. By evaluating this, they can make a better investment decision.  

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