Kroll Bond Rating Agency

Introduction

A credible credit rating acts as a fulcrum around which the sustainability of debt market and economy at large revolves. Credibility of a credit rating firm is borne by its ability to provide transparent, impartial, and comprehensive rating scores that reflect truthful and fair position of the financial security.  A competent rating firm combines modern statistical technology, all-inclusive multi-industrial knowledge and experience, dexterous and highly qualified analysts and body of staff to win trust of credit rating users. The financial and business sustainability of a credit rating firm is inherent in its trustworthiness and use of rating scales generated from the holistic analysis of all the essential information. Establishing a credit rating firm requires more than having a sufficient capital base and target market. However, the contemporary volatility in financial market and failure by the existing rating firms to give correct guidance to the investors in the wake of recent global financial crisis creates a feasible avenue for a new credit rating firm to establish itself.

Entering a credit rating business requires proficient strategy that will enable the firm establish is market position, have rating differentiation, and have a competitive edge from others. Given sensitivity of key issues that require consideration in the development of a credit rating business, this report evaluates the threats, opportunities and strategies present and required by proposed Kroll Bond Rating Agency (KIBRA)