Credit Quality

Credit quality refers to the financial health and ability of a borrower or bond issuer to repay their debt obligations. It measures the riskiness of investing in a particular bond or lending money to an individual or company. Credit rating agencies like CRISIL, CARE, ICRA, Fitch Ratings, India Ratings and Research, etc. analyse various factors to assign credit ratings, ranging from AAA (highest quality) to D (default). Investors use credit quality to assess the risk of their investments and make informed decisions.