CREDIT RATING
[28th March]
Equity- When different companies are issuing shares, equity rating
will enable the investors to choose proper equity share on the basis of
credit rating
 While judging the equity rating the past performance of the
company, earning per share (EPS) and the turnover of the
company will be taken into account.
EPS= Total amount of earnings/ Number of sales.
Bond Rating- bonds are issued both by government as well as private
sector companies in the international market rating of bonds will
depend on the rate of interest offered and the value of the currency it
represents.
 If the bond is issued in terms of US Dollar or pound sterling its
value will be high and the rating will naturally be on the positive
side.
 But the bonds of underdeveloped countries will have lessor
credit-rating due to high fluctuation in their currency value.
Promissory note rating- in order to raise short terms loans promissory
notes are issued by different commercial companies and depending
upon their resources this promissory notes will have credit rating.
 Its rating ranging from P1 to P6.
 The utilized resources lying with commercial banks may be
invested in promissory notes of a better credit rating so obtained
on idle funds.