Why should companies get a credit rating?
1 Answer(s)
Binny
In India, under SEBI guidelines, both debt issues and IPO equity issues have to be rated by credit rating agencies.
Lack of public disclosure is rarely a decision making criteria for a company to choose debt over equity. Companies that choose debt, dont want to dilute equity and promoters want to hold majority stake. Companies that choose equity, are typically in their early stage and debt is too expensive for them to consider.
Jan 19 2013 07:33 PM
Lack of public disclosure is rarely a decision making criteria for a company to choose debt over equity. Companies that choose debt, dont want to dilute equity and promoters want to hold majority stake. Companies that choose equity, are typically in their early stage and debt is too expensive for them to consider.