Typically there are quite a few providers of Credit rating for different companies e.g. Crisil, S&P, Moodys etc. However I observed that, as part of risk management, different banks also derive credit rating internally. My question is what are the reasons for that? Isnt it just reinventing the wheel, because they can just subscribe to those external rating for the company in question? Is there any regulatory mandate to do so? Also, when they derive such ratings internally, do they also use ratings from Crisil etc as important variable into the equation?



Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.