(University of Hyderabad, 2021-09)
KUMARI,MANISHA; MARY JESSICA,V
The present research aimed to study the effectiveness of credit rating in India. CRAs have played
major role in enhancing capital market but in recent past have been criticized for low quality
rating. Credit Rating is a grade assigned by credit rating agencies on creditworthiness of debt
issuers. These grades reflect the quality and risk of rated instruments. This study focused on
quality of bond rating grades and their impact on stock performance. In India, the mandatory
bond rating, compulsory capital financing through bonds and at the same time, the presence of
weak corporate bond market motivated me to carry out the research in Indian corporate bond
market. The study proceeded with two research questions - whether the rating grades are reliable
and do the bond ratings have the ability to influence stock prices