Question

A 'Credit Rating Agency' like CRISIL or ICRA primarily assesses:

Q: Answer-A 'Credit Rating Agency' like CRISIL or ICRA primarily assesses:

Credit Rating Agencies CRAs are specialized institutions that evaluate the credit risk associated with a debt obligation like a bond, debenture, or loan or the entity issuing it a company, bank, or sovereign. Their primary function is to provide an independent opinion on the probability of timely payment of interest and principal as per the terms of the contract. Ratings are expressed as symbols e.g., AAA, AA, BBB, C, D. While they may consider profitability, governance, and assets in their analysis, the core output is an assessment of default risk .