JAIIB · IEIFS

Credit Rating & 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 assessment of the creditworthiness of a borrower — individual, corporate, or sovereign — expressed as a letter grade indicating the likelihood of default on financial obligations.

Q

What is the full form of ICRA in India's credit rating industry?

A

Investment Information and Credit Rating Agency of India

Q

Which regulatory body oversees credit rating agencies in India?

A

SEBI (Securities and Exchange Board of India) regulates credit rating agencies in India under the SEBI (Credit Rating Agencies) Regulations, 1999.

Q

What does CARE stand for in Indian credit rating context?

A

Credit Analysis and Research Limited

Q

Name the major credit rating agencies operating in India.

A

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

Q

What is the full form of BRICKWORK in Indian credit rating agencies?

A

Brickwork Ratings India Private Limited

Q

What does the acronym CRISIL stand for?

A

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

Q

Which credit rating symbol indicates the highest safety for short-term instruments?

A

A1+ indicates highest safety for short-term instruments

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