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Objectives of Credit Rating

Objectives of Credit Rating

These are the important objectives of the credit rating:

finance
[Post Image Courtesy of KittiJaroon at FreeDigitalPhotos.net]

• To impose a healthy discipline on borrowings.

• To lend greater belief to financial and other representations.

• To facilitate formulation of public guidelines on institutional investment.

• To help merchant bankers, brokers and regulatory authorities.

• To encourage the information disclosure, better accounting standards, etc.

• To reduce interest cost for highly rated company.

Objectives of Credit Rating Objectives of Credit Rating Reviewed by Ikpokolo Francis on Saturday, October 14, 2017 Rating: 5

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