JAIIB · IEIFS

CREDIT RATING AND CREDIT SCORING

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Indian Economy and Indian Financial System — JAIIB.

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Q

What is credit rating?

A

Credit rating is an independent assessment of the creditworthiness of a borrower or a debt instrument, expressed as a symbol or grade, indicating the likelihood of timely repayment of principal and interest.

Q

What is the full form of SMERA in credit rating?

A

SME Rating Agency of India Limited

Q

Which are the major credit rating agencies in India?

A

The major credit rating agencies in India are CRISIL, ICRA, CARE, India Ratings and Research (Fitch), Brickwork Ratings, and SMERA (now Acuite Ratings).

Q

Which credit rating symbol denotes the highest safety for long-term debt instruments in India?

A

AAA (Triple A) denotes highest safety

Q

What does CRISIL stand for?

A

CRISIL stands for Credit Rating Information Services of India Limited, and it was the first credit rating agency established in India in 1987.

Q

What is the minimum CIBIL score generally considered for loan approval by banks?

A

700 or above is generally acceptable

Q

What does ICRA stand for?

A

ICRA stands for Investment Information and Credit Rating Agency of India Limited, incorporated in 1991 and promoted by IFCI.

Q

What is the full form of FITCH in the context of international credit rating?

A

Fitch Ratings is the full name used

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