A credit rating agency works to ensure the creditworthiness of individuals and organizations. The income is considered along with other financial details to analyze the ability to borrow and payback. With credit rating agencies it becomes very easy to find out the credit score and credit status. If you are looking for out minute details and everything you should know read further.

The meaning of credit rating

It is a measurement of a business or an individual entity’s ability to pay the economic obligations that are completely based on past income repayment histories. Many a time it is also expressed as a credit score. Lenders and banks use credit rating as a prime factor to understand if to lend the money or not. The borrowing and lending facility is a crucial part of the credit score. The weight of the statements of asset and liabilities are responsible to decide the credit rating.

Credit Rating Agency

The agency of Credit Rating Agency has examined the creditworthiness of the company. However, if there is any credit risk associated then these agencies contemplate the credit lines and debtor’s income. SEBI, better known as the Securities and Exchange Board of India, headquartered in Mumbai has the right to manage and approve the credit rating agencies according to the regulations of the SEBI.

The working capability of Credit Rating Agencies

The working capability of Credit Rating Agency is as follows-

At the initial stage, the Credit Rating Agency understands the basics of the organization, its entity, its people, and then rates it. The agency has the charge to rate the non-profit organizations, state governments, local government bodies, special purpose entities, securities, and countries. Different factors are considered before setting the ratings like financial statements, borrowing and lending the history, past credit payment, and behavior. All these factors contribute to the final rating at the end as the credit score.

However, it must be known that a credit rating agency does not provide any sort of decisions to any of the financial institutions- if the organization should get the facilities of credit or not: although it provides additional inputs that help the lender easily to make the informed decisions.

Different Credit Rating Agencies

In India, different credit rating agencies are authorized and registered under SEBI. It helps to share and compute the score of the financial candidates and institutions. The different Credit Rating Agencies are as follows-
CRISIL Limited: The full form of CRISIL is Credit Rating Information Services of India Limited. It is the oldest credit rating agency that was set up in 1987. But it upgraded to a rating platform in the year 2016. This credit rating agency operates in seven countries like Argentina, China, Poland, UK, the USA, and Hongkong along with India.
• India Ratings and Research Pvt. Ltd:
The subsidiary of Fitch Group, India Ratings, and Research provides timely and accurate credit opinions in the market of the company. The agencies’ headquarter is located in Mumbai. The organization mainly covers the financial institutions, urban local bodies, corporate issuers; structure financed companies, and managed funds. The other branches of the India Ratings and Research Pvt. Ltd are in Kolkata, Bangalore, Hyderabad, Chennai, Delhi, Pune, and Ahmadabad.
• ICRA Ltd
A joint venture of Moody and Indian Financial and Banking Service Organization is ICRA, The Investment Information and Credit Rating Agency was established in 1991. The particular organization is better known for allocating the corporate governance rating, mutual fund resting, performance rating, and more. However, this Credit rating agency helps to understand the di8fferent venture properly.
• CARE
The rating agency is under operation since 1993 (April). The full form of CARE is Credit Analysis and Research Limited. It mainly helps to raise the fund of corporate in their requirements and investment. However, the investors can make their own decisions that are based on risk and risk-return. Though the head office is located in Mumbai the firm has regional offices in many states of India- Bangalore, Chandigarh, Pune, Hyderabad, Coimbatore, Jaipur, Kolkata, Chennai, and New Delhi.
• Brickwork Ratings India Pvt. Ltd:
The rating agency is registered with SEBI. It is accredited by impaneled by NSIC, RBI, MSME, NCD, and other grading services. The agency has also received authorization from MFI, NGO, and NABARD grading. The agency can even authorize to grade the companies that seek credit facilities from Service Providing Companies, IREDA System Integrators (SIs), and Renewable energy.
• Info Metrics Valuation and Rating Pvt. Ltd
It is an RBI accredited credit rating agency that was established by former bankers, financial professionals, and administrative personnel. It helps to evaluate and investigate the organizations like- large corporations, banks, non-banking financial companies along with small and medium, scale units.

Wrapping up
The various credit rating agency establishes and surveys the integrity of existing micro, small, and medium enterprises. It can grow, avail and improve the faster and cheaper loans. Check credit score free with the several options available online and stay updated for maintaining a good credit score.

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Website: https://www.clix.capital/check-credit-score/
Phone: 1800 200 9898