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What is Credit Recommendation? You know how to keep your health better by controlling your cholesterol levels. By doing so, you get aware of your cholesterol levels and take care of your health accordingly. But do you know to sustain in the commercial market, you must also be mindful of credit scores? The research shows that to sustain in this competitive market, it is essential to know the credit scores that the companies obtain from credit recommendation agencies. Before going further, let us understand the concept of credit rating recommendation. Credit Rating Recommendation Services: Credit rating is essential for the company to sustain itself in the market. The credit risk that is associated with the financial and commercial entity is the credit rating. It can be assigned to any firm that needs to borrow money – an individual, corporation, state or provincial authority, or a sovereign government.  The credit agencies calculate the rating of the companies. Here, we at ICRA help in calculating the rating of commercial companies. There are times when companies extend the credits to their customers there is the possibility that those customers may stop making payments which reduces the earnings and revenues. The company also faces credit risk when the lender extends the business credit to make the changes. A default may occur if the company does not pay the loans on time. Importance of Credit Ratings: ICRA is the most trusted credit rating recommendation agency based on substantial diligence for borrowers. Due to the significant impact on the interest rates charged by the lenders, the borrowing entity will strive to have the highest possible credit rating.  Credit recommendation cost helps decide whether or not the investor chooses to purchase the bonds. If the credit rating is good, the investment will become better. To maintain high credit, the borrowers must remain diligent, which means that the credit ratings are never static. The negative debt brings down an even better score. Although credit takes time to build up, many debtors want to know that good credit is maintained consistently over time. To claim good credit, looking into the best credit recommendation services is essential Credit Rating Scale: Various rating agencies use different scales. ICRA also uses its rating scales to rate the other companies in the market. Following are the rating scales that are adopted by ICRA while assigning the final rating to the commercial entities. Factors that affect Credit Rating Recommendation Following are some of the factors that can influence the credit rating of the company: The payment history of the organization needs to be noticed. Current cash flows and income. The market outlook of the company or organization. Timely repayment of debts is affected due to organizational issues. Consider ICRA for Credit Recommendation ICRA is one of the most trusted rating agencies in the market, which has a team of experts having an experience 25+ years in audit, inspection, and certification. We have a skilled team who offers a superior on-ground presence in UAE. The credit capabilities are showcased to the clients with the help of the ICRA rating recommendation. Take the first step towards a better future with ICRA. Contact Our Experts!

How To Determine The Creditworthiness Of A Firm? It is essential to review the financial statement of the company for the people who want to determine the business’s creditworthiness. The financial market is usually unpredictable, and nobody can firmly predict anything in the market. After the halt on the market for about two years, the market leaders could not foresee that catastrophe would arise and significantly affect the entire market. Today also, the market has to recover entirely from the impact. Investors need to be convinced to take a risk on their investment portfolios. Even though the market has witnessed a spike in investment, particularly in the corporate sector, investors are still muddled about “How To Determine The Creditworthiness OF A Company.” Because of such situations, investors are reluctant to consider investing in the company. In this blog, we will give you a better understanding of how to determine the company’s creditworthiness. But before going further, let us know about the concept of credit rating. In simpler terms the commercial credit ratings is a numerical assessment of the firm’s creditworthiness. The ratings by ICRA are fully independent, and after analysing all the aspects of the commercial firm the ratings are assigned. Furthermore these ratings have a big influence on the market value of the firm. Jump into the pool of information Let us know everything about the credit rating process and its benefits What Is Credit Rating? The financial instruments, particularly the debt instruments issued by corporations, governments, entities, organizations, and individuals, are analyzed. It helps analyze the creditworthiness of the company or the organization in the market. Determine the Creditworthiness of the company or the organization It is essential to determine the creditworthiness of the business. There are several ways to measure the creditworthiness of the company. These calculations yield ratios that can be compared to accepted business patterns for data from other similar businesses. Following are some of the measures to determine the creditworthiness of the company: Using the current ratio: It is easy to determine the business’s liquidity by comparing the ratio between the existing assets and current liabilities. The assets converted to cash within one year are known as the current assets. This includes cash, securities, inventory, and receivables. In simple words, the ratio between the current liabilities and the current assets is called the current ratio. Using the quick ratio: It is the same as the current ratio. It just considers the cash, accounts receivable and marketable securities. Due to business variations, the ratio should be used carefully. The ratio can also be used in conduction with the other data due to business variations. The Debt To Equity Ratio: It helps compare the liabilities with the owner’s total equity. It helps in indicating the finance o the company. The business is considered to be at risk if the ratio increases. It helps in continuing the operations for the long term. The Receivables Turnover Rate: The total amount of receivables is divided by the total amount of collections for a specific time. The business may be in a problem collecting the accounts when there is an increase in the receivables turnover. Conclusion We are sure the points mentioned above will help you determine the company’s creditworthiness. ICRA is here to help you to determine your creditworthiness. Take the first step towards a better future with ICRA. Contact Our Experts!

ICRA Rating LLC UAE helps Zambia Real estate company secure a loan of $1.12M Credit ratings are assigned after analyzing various factors about the company, such as asset quality, capitalization, and earnings. Similarly, the recent ratings by ICRA Rating LLC UAE have helped the real estate firm based in Zambia hassle-freely secure a loan of $1.12m USD. Take the first step towards a better future with ICRA. Contact Our Experts!