Understanding Credit Worthiness of Customers Form

Instructions and help about Understanding Credit Worthiness Of Customers

[Music] the focus of the retail investor in debt mutual fund has really now shifted to the credit quality of the bonds in those portfolios and this is measured using the credit rating so credit rating is nothing it's just a score which evaluates the quality of the company and judges them in respect of their ability to repay the money on time so today let's take a look at what credit ratings of bonds are and how you can understand them correctly every amc will issue monthly fact sheets and portfolio statements for every single scheme among many other important things this statement lists out the credit quality of the underlying bonds in the portfolio one can find the name of the issuer the rating assigned by a rating agency and the exposure by the debt fund primarily there are two types of ratings one for long-term instruments and one for short-term instruments within long-term the highest notch is triple-a which means it has the least chance of default do note that this does not mean c