TASSNIEF ROLES

 

 
 

The development of capital markets

As a credit rating agency, we help to provide the best risk measures for various entities.

And make it easier for financial market participants to assess and understand the credit risk of the parties involved in the investing process. Corporations and governments can issue debt in the form of corporate bonds and treasuries to attract investors based on the credit ratings.       

      
 
 

To help regulate the financial markets

The credit ratings provided will be the benchmark for regulation of financial markets.

Legal policies require certain institutions to hold investment graded securities. Securities are classified to be investment graded based on their ratings by these agencies, any corporate bond with a rating higher than BBB is considered to be investment graded securities.       

      
 
 

To enhance transparency in the credit market

We provide improved efficiency in the credit markets and allow for more transparency in dealings.

The ratings, we assigned, help monitor the credit soundness of various borrowers through a set of well-defined rules and methodologies.       

      
 
 

To help in the estimation of the risk premiums

The credit ratings we provided are used by various banks and financial institutions in determining the risk premium

they will charge on loans and corporate bonds. A poor credit rating implies a higher risk premium with an increase in the interest rate charged to corporations and individuals with a poor credit rating. Issuers with a good credit rating are able to raise funds at a lower interest rate.       

      
 
 

The standardization of the evaluation process

While most credit agencies use their own methodology for determining credit ratings,

these methodologies are however, standardized in the rating process. Thus, the credit ratings of different entities by different credit rating agencies can be easily compared and benchmarked.       

       
TOP