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What is Credit Rating Agency? - Business Studies

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Question

What is Credit Rating Agency?

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Solution

A credit rating agency is an autonomous professional organisation that assesses the creditworthiness of individuals or companies. It conducts thorough research on businesses and the securities they issue to evaluate their ability to repay debts. The ratings assigned by such agencies are significant because they influence the perceived risk attached to loans, ultimately affecting the interest rates charged.

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Chapter 22: Business Regulators and Intermediaries - QUESTION BANK [Page 308]

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Goyal Brothers Prakashan Business Studies [English] Class 12 ISC
Chapter 22 Business Regulators and Intermediaries
QUESTION BANK | Q 4. | Page 308
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