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A Credit Rating Agency is an entity which specializes in assessing the risks associated with certain types of debt obligations and based on the risk perception a Credit Rating Agency assigns credit rating to these issuers. The issuers may be a company, a banking & financial institution, local government agencies or even a country. The role of Credit Rating Agency is very significant as an investor generally taken into account the credit rating into account while deciding an investment. It is a prudent policy to analyze and ascertain the reliability, track record and reputation of any particular Credit Rating Agency before taking into consideration its recommendations.

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