Credit rating agencies have compete a very important role for many years in monetary markets. The foremost responsibility of rating agencies is to convey their opinions concerning the default risks of sure issuers or market instruments by assignment credit ratings. The ratings they supply square measure wide employed by numerous market participants. Additional specifically, lenders will place confidence in ratings in decision-making while not having to have interaction themselves within the pricey and long operation method. For borrowers, ratings will widen their access to funding through dissemination of their credit quality info to investors. Portfolio managers conjointly use credit ratings in portfolio management. Ratings from sure reliable agencies are employed by regulator. As an example, the SEC projected that public firms inform investors what square measure the ratings of their securities as given by the agencies. The city Committee on banking direction (BCBS) establishes capital adequacy needs supported ratings provided by external credit rating agencies. Supervisor:- Dr. Usman Mustafa