fin625 assignment no 1 april Credit and Risk Management spring 2011

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Assignment No. 1 Marks: 15
A credit score is a score granted to an individual person or to a corporation by a credit rating
agency after considering all the relevant factors. Keeping in mind the above fact, answer the
following questions
1) What is meant by credit rating and briefly explain the credit rating agency PACRA
working in Pakistan? (Marks: 07)
2) How does a corporate credit rating differ from personal credit rating? (Marks: 04)
3) What could be the possible reasons of a negative credit score for an individual or a corporation? (Marks: 04)

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