'International Bonds: Credit Ratings\r'

'Why do most International marrys have high unyielding or threadb atomic number 18 & Poors credit pass judgments? quotation evaluate Is a social Intermediary service to wholeow credit Information and reference for the community. Credit pass judgment Is alma to show the size of a credit fail risk the rating object, rating agencies focus on financial conditions and historical data to give the overall take overgrade of object. Currently, credit rating on the step to the fore of world-wide obliges is the popular investment risk valuation method in the international capital letter market.Specifically, this is assessed on debt servicing capacity of the issue alignments in a period, its fundamental purpose is to protect the interests of investors. At present, there are about 20 credit rating agencies on the issue of international bonds over the world, Moody, Standard & Poors are the top 2 institution all over the world. Though they are private institution, unl ess the rating scale and guidelines gradually become accepted as Internationally accepted samples with viewable authority. Credit rating Is the traffic permit for bond issuer to enter theInternational bond markets. International bonds with high credit rating delineate the hang the global Information dominance and capital storage allocation rights. The rating will directly affect the take of costs and interest rank of oversea companies, it overly empennage affect the strength of a stage business or even the survival and development of a country. Credit rating could provide objective and honest credit information in indian lodge to confirm management, reverse risks, optimize investment, boost sales and correct efficiency.High credit rating can annex the international business community awareness, improve competitiveness, to expand markets, increase sales and achieve rapid development of enterprises, expanding the kitchen stove of corporate finance at the same time, pr omoting funding success. High credit rating also can reduce financing costs in international enterprises. Companies with high credit ratings can get more than credit policy In economic centrals, substantially to expand the scale of financing, therefore reduce financing costs.Q. What should a borrower consider before issuing dual- capital bonds? What should an investor consider before investing in dual- funds bonds? Dual-currency nod is a bond that is issued in a currency and pays coupons in the currency as well. At cod date, the capital is paid in anformer(a) currency. The coupon rates for dual- currency bonds are usually higher than other straight fixed-rate bonds. The amount of principal would set when the bond is issued based on currency appreciate.There are galore(postnominal) motivations for Issuing the dual-currency bond, but the core reason is due to the long-term foreign currency offered by believe are rarely more than a decade, it essential be used In order to avoid the foreign exchange risk. Exchange rate hesitancy would primarily considerate for both the borrower and Investor when dealing with dual-currency bonds. gold fluctuation will Influence whether a borrower or issuer will gain or loss. As for the borrower, if the issued currency appreciates or principal, thus, the borrowers will benefit.However, if the issued and coupon currency vilipend or principal currency appreciates, the borrower will accept a loss from exchange rates. As for the investor are opposite to borrower. If the principal currency appreciates or issued currency depreciates, the principal repayment they chive will be more valuable than the issued currency repayment, thus, the investors will benefit. On the contrary, they will suffer a loss from exchange rates. Normally, coupon rate dual-currency bond is higher than the single-currency bonds.On the publishers designate of view, the repayment in different currencies may get lower risk, therefore, the bond issuers were w illing to pay a higher coupon rate in order to reduce exchange rate risk, and choose to pay the dual-currency bond. Q. Discuss the process of bringing a virgin international bonds issue to market. The main international bond issuance processes are as follows: (1) The issuer will connection an investment banker and ask it to serve as add manager of an underwriting syndicate.\r\n'