| Summary: | Credit Rating Agency is a company which publishes credit ratings for bond issuers. Bonds
issued by the company / institution/ issuer typically are bonds that can be traded in the primary
or secondary market. The issuer can be a company, city, nonprofit organization or government
of a state.
The purpose of this research is to understand the the roles and responsibilities of Credit
Rating Company regarding the issuance of rated securities, to know the legal basis, the rating
process, and to understand the use of securities rating for the bond market. This research is a
legal normative research with the conclusion is obtained based on library research supported by
questionnaire.
After analyzing the data, shows that the Credit Rating Company has the role of:
(a) To become the main indicator that showing the risk of debt / bond. The higher the ratings,
the more possibility that bond issuer can fulfill its obligations so that be used as a reference for
investors (although ratings are not recommendations for investors to take investment decisions)
in order to determine the success of the sale of debt securities, especially in the primary market.
(b) The rating is an objective and independent opinion in order to assess the ability and
willingness of an issuer to meet its financial obligations in a timely manner. The Objects that
can be rated are: Debt securities, Sukuk (Islamic Bonds), Asset-Backed Securities or other
securities that can be rated
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