how the credit rating helps in mibor or libor rates and is there any interest rate benefits for good rating?

is good credit rating helps the industry to get finance frm market and on low interest rate, and is there any source frm where someone got the information abt it

Public Comments

1. Mibor and Libor are inter bank rates and credit rating has nothing to do with Mibor and Libor. The spread over these benchmark rates ( % over benchmark) is the credit spread and this depends on teh credit rating of the borrower. Higher the credit rating, lower the spread. AAA rated customer may be able to get a loan with a spread of 50 basis points (0.50%) over the benchmark while a AA rated borrower may have to pay 1.25% over while for a A rated borrower, the quote may be in the region of 2.25% over the benchmark. MIBOR rates one can get on NSE WDM site while LIBOR rates for different tenors on FEDAI or RBI site.