A LITERATURE REVIEW ON CREDIT RATING AGENCIES - NATIONAL & INTERNATIONAL PERSPECTIVE

The development of any nation depends on the growth of its industries, infrastructure, people, trade, etc. But
all this could flourish, if there is sufficient finance available. Finance is the basic need for any activity and
hence, its avenue and trusted sources play a vital role. Creditworthiness of any individual, company, industry,
or nation is an important factor for determining the exact estimation of the economy. Thus, creditworthiness
enhances the trust among the investors or debtors and helps them in making investment decisions by
managing the credit risk to the optimum. Hence, to evaluate the creditworthiness there are some specialized
companies called as Credit Rating Agencies (CRA). They evaluate the risk on various aspects. The concept
of CRA emerged in the USA and later was adopted by all the nations. Many experts and authors have worked
on the CRAs at national and international level. Extensive literature is available to satisfy one’s
inquisitiveness to learn more about these agencies. This research paper is nothing but an attempt to describe
the CRA from both Indian and Foreign context. It covers the various concepts related to CRA and put forth
the research work done by the several researchers over this concept.