Question

1. What major differences do you see in equity research reports vs. how credit rating agencies view the same or similar information? Compare/contrast the different approaches.

Answer 1

Equity research report are generally prepared for investment into the equity shares whereas credit rating agencies are offering with credit ratings for various bonds and other securities of the companies.

Equity research reports is generally looking for providing with the share price target as credit rating reports are always looking for providing with the quality of securities from the perspective of solvency

Credit rating are generally preferred by those investors who are looking for investment into secured asset for the longer period of time where as equity research are preferred by investors who are looking for investment into shares for undervaluations.

Equity research reports needs of very high degree of forecasting whereas credit quality reports will generally be associated with the very high degree of extensive research about the company's solvency

Equity research reports are prepared by investment bankers and equity researchers were as credit rating reports are prepared by rating agencies.

credit rating will generally focus about solvency of the company in the long run Whereas, equity research will focus about the market price valuation of the company.