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How Are Companies To Be Listed?
#1
What Does Company Rating Mean?

In this article, we will look for the answer to the question of whether the companies that will be opened to the stock market are rated well. First, it would be useful to summarize what the company's rating is. Company rating generally measures the energy and willingness of the firm to repay its debt along with principal and interest. Another expression is to measure the risk of the firm's inability to repay its debt in accordance with its borrowing rates. In the same way, credit rating should not be perceived as investment advice in any way similar to buy or sell. In addition, it is a very effective data set in facilitating the decision-making stage for investment. The effect of Company Rating is mainly seen in the following interests: firms, investors and banks that receive or make a credit rating, as well as credit institutions.


As long as a firm's credit rating is on the rise, the firm's risk perception decreases. A decrease in the risk perception of a firm gains the opportunity to provide loans at a lower cost than the banking sector. In addition, borrowing instruments can be issued at low interest rates in the main money markets. Let's look for answers to the question of whether companies that will be opened to the stock market are rated well.

In the evaluation process, there is often a kind of preliminary interview in which the company with the demand for a credit rating and the rating agency have information about the basic principles and process. In fact, this is a situation that starts the process. After this transaction, a credit rating agreement is signed. The step mentioned here is followed by information meetings for senior managers and other managers related to this issue, which include performance and financial status related to the company's activities and risk management. Credit rating is given to the company as a result of the decision of the rating committee by providing and providing them with the data and documents requested by the rating experts and the work to be done by the experts. If the main money market instruments of the company receiving the stage are traded on the stock exchange at the end of their transactions, the company receiving the stage is expected to fulfill its obligations to inform the public. It may be useful to note that the corporate governance practices of the company to be graded in the company rating process are of remarkable importance.
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