What is rationale?

A rationale is when you are asked to give the reasoning or justification for an action or a choice you make. There is a focus on the ‘why’ in a rationale: why you chose to do something, study or focus on something. It is a set of statements of purpose and significance and often addresses a gap or a need.

What is rating in finance?

Ratings in the world of business has several meanings – the two main ones are 1. It is an assessment of an investment’s risk, the ranking of, for example, bonds, debentures, notes and other debt securities by bond rating agencies by the creditworthiness, earnings record and financial stability of the issuer.

What is credit rating process?

Process of Credit Rating. Credit rating process is the process in which a credit rating agency (preferably third party) takes details of a bond, stock, security or a company and analyses it so as to rate them so that everyone else can use those ratings to use them as investments.

What is an example of credit rating?

Credit ratings can determine whether you qualify for financing. For example, most businesses receive credit ratings expressed as letter grades (such as triple-A, double-A or A) from agencies such as Standard & Poor’s, while you receive a rating expressed as a score, known as a FICO score.

What is a rationale example?

A decision rationale describes the reasons for a decision. For example, a decision to reject a business plan may explain the risks or shortcomings of the plan. The business plan was rejected because the business model created value for customers by creating large risks for us.

How do you write a rationale?

To write your rationale, you should first write a background on what all research has been done on your study topic. Follow this with ‘what is missing’ or ‘what are the open questions of the study’. Identify the gaps in the literature and emphasize why it is important to address those gaps.

What is a rating action?

Rating Action means any initial Credit Rating, any change to a Credit Rating, any withdrawal or suspension of an existing Credit Rating, any affirmation of an existing Credit Rating, any CreditWatch action, or the assignment of a new Outlook.

Why are ratings so important?

Ratings and reviews help shoppers make informed, confident purchases. Rating and reviews are the number one online feature shoppers rely on when making informed product decisions faster, more so than product page descriptions, chat bots, and the website’s search tool. But consumers aren’t just using them online.

What is credit rating objectives?

Objectives of Credit Rating Credit rating aims to: Provide superior information to the investors at a low cost; Provide a sound basis for proper risk-return structure; Subject borrowers to a healthy discipline, and. Assist in the framing of public policy guidelines on institutional investment.

Why credit rating is important?

A good credit rating improves credibility and indicates a good history of paying back loans on time in the past. It helps banks and investors decide about approving loan applications and the rate of interest offered.

What is the purpose of credit rating?

Credit ratings are basically opinion about the credit quality of an issue—like a bond or other debt obligation—which reflects the relative likelihood that it may default. Credit ratings enable corporations and governments to raise money in the capital market.

How do I write a rationale?