credit rating in all issues of debenture is optional or compulsory
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compulsory is the answer
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Credit rating in all issues of debenture is compulsory
- Debentures cannot be issued by a corporation to more than 500 individuals without first hiring a debenture trustee, whose job it is to defend Debenture Holders' interests and resolve their complaints.
- Credit rating organisations such as CRISIL, CARE, and others rank businesses. The rating of a firm is very important in determining its potential. A better credit rating indicates that the firm can meet its financial commitments.
- A bad credit score, on the contrary, indicates that the firm faces significant credit concerns. If an issuing business fails to make payments, the rating agencies will penalise them.
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