While investing in bond, debenture, fixed-income, or other debt securities, one of the first things you will come across is the credit rating of the security. Credit ratings are basically designed to help an investor know the creditworthiness of the issuer and the degree of credit risk of the security.<\/p>\n\n\n\n
CRISIL is one of the best known credit rating agencies in India.<\/p>\n\n\n\n
Yet, there is an immense misunderstanding about CRISIL ratings amongst many investors who think that a good rating ensures returns and no risks at all. This is not true. The whole concept of credit rating is to provide an opinion about credit risk and use it as one of many criteria for investment decision-making.<\/p>\n\n\n\n