The latest free e-book is up on the site. This edition we decided to throw some light on the credit rating process, which is so important to the project finance industry. Written as an introduction, the reader will find out
- What are they
- Who performs them
- Why are they important
- How are they composed
Briefly, it covers how a credit rating estimates the credit worthiness of an individual, corporation or even a country. How it is used as a proxy evaluation of a potential borrower’s ability to repay debt. Typically, a credit rating tells a lender or investor the probability of the borrower being able to pay back the debt under normal conditions. A poor credit rating indicates a high risk of defaulting on a loan, thus leads to high interest rates or the refusal of a loan by the creditor.
Other sources of rating information can be found at
E-books prior to this can be found here and include