“ECRL’s assigned rating helped me to understand the true position of my company compared to the industry giants. Based on the assigned grade I decided to make my investment decisions for next year as a result the decisions which were taken were much more informed and helped me to attain higher business growth.”
– commented by one of ECRL’s Client
Basel – II Compliance for Bank
- Credit rating is required to reduce credit risk under Basel-II: Capital Adequacy Guidelines.
- Earning capital relief with respect to the ratings obtained
- Saving cost of borrowing as equivalent capital from the market
- Earning margins on lending by leveraging the additional capital
Benefits to the Business
- Gives an insight on the financial health of a company
- Gives an indication of how the company is performing in absolute terms
- Helps compare a company’s credit worthiness against its competitors both nationwide and worldwide
- Gives an indication of how a company is expected to perform in the future and whether it is well placed to repay its debts and meet its overall financial obligations.
- Increased securitization of borrowing and lending consequent to disintermediation.
- Improves corporate image which may lead to growth & expansion of business
- Lowers cost of borrowing with an access to wider audience for borrowing
- Ability to act as marketing tools for new or less renowned companies