Credit rating is an independent assessment of an entity’s ability to meet its financial obligations on time. It serves as a critical signal of creditworthiness for investors, lenders, and regulators, influencing borrowing costs, investment decisions, and overall market confidence. Nitesh Jain, Chief Rating Officer at CareEdge Global IFSC Limited, explains how credit ratings work and why they play such a pivotal role in modern financial systems. CareEdge is a leading global agency that provides c

A credit rating agency (CRA, also called a ratings service) is a company that assigns credit ratings, which rate a debtor's ability to pay back debt by making timely principal and interest payments and the likelihood of default. An agency may rate the creditworthiness of issuers of debt obligations, of debt instruments and in some cases, of the servicers of the underlying debt but not of individual consumers.. What are These Ratings? A credit rating issued by a rating agency is an assessment of