Critically evaluate the role of credit rating agencies in the debt capital markets

Credit rating Agencies play a vital role . They assess whether the company is trustworthy to repay back the loans taken from lenders and such bonds have collateral . These agencies evaluate the risk of a prospective lender by analysing the qualitative and quantitative information of the lender and evaluating their ability to repay back the debt . They rate the securities which becomes a tool to measure the risk of any security defaulting. They assist in investor protection by assisting them in taking decision , regular reviews of ratings , helps them in saving time and effort as the analysis process is already done by the rating agencies