Abstract: In this paper we will describe S&P Insurance Ratings, which is used to evaluate the public and private companies' creditworthiness. This rating is also known as Counterparty Credit Rating. It helps the companies as well as individuals in many ways to improve their performance.
Standard & Poor’s Insurance Ratings, widely known as Counterparty Credit Rating, estimates the creditworthiness or responsibleness of the public and as well as the private companies, that is, if a company issues at all in the public debt markets or not.
In addition to that, Standard & Poor’s also makes the rating of the debt securities and several other financial obligations of an issuer.
l Usefulness:
1) This kind of rating can help company to gain lenders' confidence and also to negotiate the pricing
by the following ways:
I. It improves the processes of financial transactions.
II. This rating advances the issuance of debt in the credit markets.
III. It provides all possible placements to the borrowers of their debt instruments.
IV. The potential business partners can get the idea of the company's financial strength.
V. It provides a standard for peer comparisons.
2) S&P Insurance Ratings can help the individuals to create a difference when they want to:
I. Start a joint business venture,
II. Assess their funding options or search for their strategic alternatives,
III. Compare their creditworthiness with peers,
IV. Improve their transparency for the customers.