Fixed Deposits (FD) are floated by non-banking financial companies, manufacturing companies and other entities normally for short / medium term. The characteristics of FD are similar to debt instruments as regards to coupon payment and payment of principal. From an issuer’s perspective, FD has certain unique features such as high number of retail investors, small and frequent maturity amounts and issuances.

Benefits to the Investor:

• Credit Rating provides an independent, unbiased opinion on the debt instrument, indicating the degree of safety with regard to timely payment of interest and principal based on detailed analysis of all relevant factors.
• Investor gets reliable information free of cost, other than that in public domain.

Benefits to the Issuer:

• The issuer gets to understand its relative standing in comparison to its peers.
• Enables the issuer to arrive at a fair price of his borrowings.