Credit Rating Company Essay

2098 Words Feb 26th, 2013 9 Pages
CRAB Rating Scale
CRAB Long Term Rating Scale
CRAB Short Term Rating Scale
CRAB Long Term Rating Scale
Rating Methodologies:
It’s different for several sectors. Such as several methodologies for bank rating, financial institution rating, corporate rating, general insurance rating, life insurance rating, government owned enterprise rating and securitization rating.
Other services:
1. Grading Services
2. Advisory & Consulting Services
3. Information Service

National Credit Ratings Ltd

National Credit Ratings Limited (NCR) is a credit rating agency in Bangladesh. It was incorporated as a public limited company under the Registrar of Joint Stock Companies in August 2010 and received its certificate
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Analysis typically involves at least three years of operating history and financial data as well as forecasts of future performance. To achieve a clearer perspective on relative performance, a company’s performance is compared with that of others in the same industry. In addition a sensitivity analysis is performed to assess a company’s capacity to cope with changes in its operating environment.
The rating accorded is based on numerous factors including, but not restricted to those detailed below:
Operating Environment
The industry’s volatility, its position within the broader economy and effects of economic cycles on the industry. Government regulations, tariff structure; threat from imports; price competitiveness of the domestic industry and pace of technological change; Basis of competition and key success factors; structure of the industry, entry and exit barriers; environmental and political factors.
Entity’s Relative Position:
Size of the entity and market share; Competitive advantages and weaknesses; Relationship with the suppliers and buyers; Diversification of income sources; Technology.
Stand alone Financial Strength
Capital structure, profitability, liquidity position and financial flexibility; Financial projections; Free cash flows and their sensitivity to various economic industrial and business risks over the medium term; Accounting policies and practices.

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