An Appraisal of Credit Rating Agency of Bangladesh Limited

Abstract

Credit Rating Agency of Bangladesh Ltd. (CRAB) is the second credit rating agency in Bangladesh. Credit Rating Agency of Bangladesh Ltd. started their journey on 5 April 2004. Credit Rating Agency of Bangladesh Ltd. has a technical collaboration with Investment Information and Credit Rating Agency ClCRA) of India, one of the leading credit rating agency in India. As the second credit rating agency in Bangladesh CRAB has already done some rating assignment, now they are doing couple of rating and they have some potential client to doing the rating assignment. The main objectives of Credit Rating Agency of Bangladesh ltd. are to provide information to the investors, to provide consultancy and advisory services to their clients, to perform rating services, to perform grading services. The sponsors of the Credit Rating Agency of Bangladesh ltd. are the country's most reputed personalities. To perform the rating services CRAB followed some steps. And in these steps there are all things that shows how CRAB doing their rating. Such as, CRAB has a rating team to do their rating, CRAB arrange a rating committee meeting before submission of final rating etc. CRAB has own rating framework that are help them to submit the rating awards to their clients. Such as industry char!lcteristics, market position, new project risks, management quality, financial flexibility etc. And finally CRAB has their own rating symbols. And from these rating symbols CRAB give rating award to their clients. For example, if any instrument are very safety and not too much risk involved and earning prospect is very high then this instrument rating is very good such as AAA, AA, A 1 and if any instrument that is not too much safe, there are lots of risk involved and earning prospect is bad then this instrument rating is low such as CCC, CC, C.