Credit Rating Companies and Their Activities in Bangladesh: An Evaluation

Bidhan Chandra Mazumder

Abstract

This paper focuses briefly on the rating activities as well as the quality of ratings as adopted by the credit rating companies based in Bangladesh. Although there are 08 rating companies currently operating in Bangladesh, this study reveals that nearly 70% of the total rating services offered by the companies as of December, 2012, were concentrated only to Credit Rating Information and Service Limited and Credit Rating Agency of Bangladesh Limited. Apart from some other challenges like clients’ undue bargaining andunusual number of issued ratings, the quality of ratings is reportedly satisfactory with high retention of investment grade ratings .  In conclusion, the paper offers some significant implications based on findings.

Keywords: Credit Rating Companies, Rating Activities, Rating Qualities, Bangladesh