CRISIL

CRISIL is India's leading Ratings, Research, Risk and Policy Advisory company. At the core of CRISIL are its unimpeachable credibility and unmatched analytical rigour. Leveraging these core strengths CRISIL delivers opinions and solutions that: » Make markets function better, and, » Help clients mitigate and manage their business & financial risks » Help shape public policy. CRISIL offers domestic and international customers a unique combination of local insights and global perspectives, delivering independent information, opinions and solutions that help them make better informed business and investment decisions, improve the efficiency of markets and market participants, and help shape infrastructure policy and projects. Its integrated range of capabilities includes credit ratings; research on India's economy, industries and companies; investment research outsourcing; fund services; risk managementinfrastructure advisory services more ». and CRISIL's majority shareholder is Standard & Poor's, the world's foremost provider of independent credit ratings, indices, risk evaluation, investment research and data.

Distinctive features of CRISIL Ratings
• Offers a reliable and independent view • Focuses on substance rather than form • Looks at actual practices through an interactive process rather than an audit of regulatory compliance • Takes into account the perspectives of all stakeholders (shareholders, debt holders, employees, customers, suppliers

and risk and policy advisory services. Short term instruments like short term deposits as well as programs related to commercial paper are also rated by CRISIL. CRISIL has the credit of rating the state governments of Andhra Pradesh. • • • • Who We Are We are a global analytical company providing ratings. preference shares are rated by CRISIL. research. Karnataka and Gujarat. . It works in association with the National Real Estate Development Council. structured obligations. It has rated several joint ventures as well as subsidiaries of many multinational companies. It also rates fixed deposits. With regard to ratings of bank loans. CRISIL also rates real estate projects of several real estate companies. the facilities of credit offered to the customers are also rated by CRISIL. Maharashtra. which are long term instruments.and society at large) • Quantifies the value created on account of good governance practice • Recognises crucial role of stakeholders in value creation for shareholders • Provides an appropriate balance of quantitative and qualitative factors CRISIL 's rating activities: • Rating of bonds and debentures.

Our defining trait is our ability to convert data and information into expert judgements and forecasts across a wide range of domains. We also work with governments and policy-makers in India and other emerging markets in the infrastructure domain. Within India our customers range from small enterprises to the largest corporations and financial institutions. a part of The McGraw-Hill Companies. Who We Serve We address a rich and globally-diversified client base. Our majority shareholder is Standard and Poor's. are our values: Integrity. and market intermediaries make better-informed investment and business decisions. We are also the foremost provider of high-end research to the world's largest banks and leading corporations. At the core of our credibility.by mitigating and managing risk. outside India our customers include the world's largest banks and leading corporations. unmatched credibility. Our offerings allow markets and market participants to become more transparent and efficient . Analytical Rigour. and large customer base. we deliver analysis. built up assiduously over the years. Commitment and Innovation. with deep expertise and complete objectivity. . With sustainable competitive advantage arising from our strong brand. and solutions that make markets function better. These help lenders and borrowers. with independent analysis. regulators. taking pricing decisions. market leadership across businesses. is the world's foremost provider of credit ratings. and the markets at large.We are India's leading ratings agency. benchmarks and tools. issuers and investors. How We Add Value We empower our customers. Independence. opinions. Standard & Poor's.

Our People We carefully nurture a fungible talent pool that can rotate seamlessly across businesses. We are able to provide business leadership opportunities to an increasing number of our talented employees because of our rapidly-growing businesses. providing research support across several time zones and in multiple languages to global organizations.800 SMEs) outstanding. fixed income research (covering global economies. 150 global . range of services.787 ratings (including over 6. and is today the undisputed business leader.738 entities.generating more revenue. private equity players and asset management firms. CRISIL pioneered ratings in India more than 20 years ago. China. we catalyze economic growth and development in these countries. insurance companies. with the largest number of rated entities and rating products: CRISIL's rating experience covers more than 41. By helping shape public policy on infrastructure in emerging markets.000 small and medium enterprises (SMEs). reducing time to market and enhancing returns. consulting firms. CRISIL is the largest credit rating agency in India. As on June 30. CRISIL Global Research & Analytics (GR&A) is the largest and top-ranked provider of high end research and analytics services to the world's leading commercial and investment banks. CRISIL GR&A operates from research centers in Argentina. and geographical footprint. The CRISIL GR&A team has deep expertise in the areas of equity research. 2011. providing the domain expertise and cultural cement that holds our many businesses together. Our people remain the factor that makes the totality of the CRISIL group far more valuable than the sum of its parts. including 20. corporations. India and Poland. we had more than 13.

customised research that allows clients to take informed business and investment decisions. 75% of whom hold advanced degrees in finance. accelerate time to market. companies CRISIL Research meets the requirements of more than 750 Indian and global clients. Through constant innovation. risk management. It has the largest teams of equity research analysts and derivative analysts outside of investment banks and the largest team of fixed income/credit analysts outside of banks/rating agencies. Apart from off the shelf research reports. CRISIL also provides incisive. valuations. take pricing decisions and improve operational efficiencies. industry. and comprehensive research offerings covering economy. Our clients include:      12 of the top 15 global investment banks 2 of the top 10 global consulting groups 3 of the top 10 global Asset Management Companies 3 of the top 15 global insurance companies Several fortune 500 companies CRISIL Research is India's largest independent research house. This expertise enables our clients enhance revenues. CRISIL GR&A has over 2. . pricing complex derivatives. CRISIL GR&A has served more than 500 firms over the last decade.000 employees. accounting and management.sectors and over 3000 global companies). Being part of the CRISIL platform enables CRISIL GR&A to attract and retain top quality talent. structured finance. actuarial analysis and business intelligence.

Comprehensive research coverage on over 65 industries and 150 corporates makes CRISIL a preferred service provider to    90% of India's commercial banks 4 of the world's largest consulting firms All the leading brokers. . initial public offer grading. CRISIL Equities Offerings under CRISIL Equities are classified as . mutual fund services. indices and market benchmarks and customised investment research. Its Mutual Fund Rankings have been the industry standard for mutual fund evaluation in India for more than a decade. Mutual Fund Services CRISIL FundServices (CFS) is India's leading provider of rankings. CRISIL provides customised research solutions as well. CRISIL equities also provide equity outsourcing and customised research for information memoranda and offer documents that are prepared by companies as part of their fund-raising initiatives. desktop and valuation tools. CFS has executed various policy level prestigious assignments   Assisted Employee Provident Fund Organisation (EPFO) in selection of fund managers to manage the EPFO's funds and provide better returns to its members. investment banks and private equity players CRISIL is an eminent player in the capital markets space with detailed perspective covering both debt and equity markets.independent equity research (globally a unique concept) and initial public offer (IPO) grading. CRISIL's capital market offerings can be categorised under equity research. Assisted Provident Fund Regulatory and Development Authority (PFRDA) in framing regulations under the PFRDA act. Additionally. and fixed income services.

2007. In addition to providing innovative software products. CRISIL Risk and Infrastructure Solutions Ltd (CRIS). donor funded agencies and leading organizations in over 20 emerging economies across the world to:    Transform efficiency of public institutions and sector Design and strengthen reform programmes to catalyse private sector participation Improve infrastructure service delivery Some of the key assignments executed :   CRISIL Infrastructure Advisory strategized the takeout finance scheme .CRISIL Infrastructure Advisory* provides practical and innovative solutions to governments. CRISIL transferred its advisory and risk consulting business into a wholly owned subsidiary. and corporates across all areas of risk including: credit. it also extends consultancy services and analytical insights. Ranked as the No. market and operational. CRISIL Risk Solutions has delivered risk solutions to about 50 financial institutions in India and . financial institutions. * Effective April 01. CRISIL Infrastructure Advisory's Energy Practice has designed and implemented first of its kind novel Electricity Distribution Franchisee Contract in Maharashtra. CRISIL Risk Solutions CRISIL Risk Solutions* (CRS) provides comprehensive risk management services to banks.a method of making long term debt financing available to large infrastructure projects for India Infrastructure Company Ltd (IIFCL). 1 Risk Solution provider in the last Indian Banks' Association (IBA) Finsight media survey.

This rating indicates that the degree of safety regarding timely payment of interest and principal is satisfactory. FB Inadequate Safety FC High Risk . the relative degree of safety is not as high as for fixed deposits with 'FAAA' ratings. Such issues have factors at present that make them vulnerable to default. CRISIL Rating Symbols For Fixed Deposits FAAA ("F Triple A") Highest Safety FAA ("F Double A") High Safety FA Adequate Safety This rating indicates that the degree of safety regarding timely payment of interest and principal is very strong. Such issues are less susceptible to default than fixed deposits rated below this category.abroad and has largest user base of more than 100000 users. but the uncertainties that the issuer faces could lead to inadequate capacity to make timely interest and principal payments. This rating indicates inadequate safety of timely payment of interest and principal. This rating indicates that the degree of safety regarding timely payment of interest and principal is doubtful. Changes in circumstances can affect such issues more than those in the higher rated categories. adverse business or economic conditions would lead to lack of ability or willingness to pay interest or principal. CRISIL transferred its advisory and risk consulting business into a wholly owned subsidiary. CRS's flagship product RAM is the largest deployed Internal risk rating solution in India. This rating indicates that the degree of safety regarding timely payment of interest and principal is strong. However. CRISIL Risk and Infrastructure Solutions Ltd (CRIS). * Effective April 1. 2007.

Fitch and CARE. How Credit Rating Works? . 'Stable' or 'Negative'. Ratings on Rating Watch will not carry outlooks. A rating outlook can be 'Positive'. Instruments rated 'NM' have factors present in them. the obligation being under dispute in a court of law or before a statutory authority etc. which render the outstanding rating meaningless. A rating outlook indicates the direction in which a rating may move over a medium-term horizon of one-totwo years. These include reorganisation or liquidation of the issuer. Credit Rating-full coverage on various ratings in India There are four ratings agencies In India-CRISIL. 3) The contents within parenthesis are a guide to the pronunciation of the rating symbols. A 'positive' or 'negative' rating outlook is not necessarily a precursor of a rating change.every rating agency has its own scale of credit ratings to indicate the probability of default.FD Default NM Not Meaningful This rating indicates that the fixed deposits are either in default or are expected to be in default upon maturity. ICRA. Note: 2) CRISIL may assign rating outlooks for the ratings from 'FAAA' to 'FB'. 1) CRISIL may apply '+' (plus) or '-' (minus) signs for ratings from FAA to FC to indicate the relative position within the rating category.

Speculative grade Any rating below BBB. A debt security with AAA can borrow at the lowest rate in the markets. The long-term credit rating scale ranges from AAA to D. Such speculative securities are more commonly known as high-yield securities.are considered investment-grade ratings & are mostly purchased by mutual funds and institutional investors.but for investor it becomes easy to analyse different debt securities on the basis of credit rating. For instance. as one moves down the rating scale.(i. An additional ‘+’ or ’–‘ sign is affixed to the ratings (except for AAA and D) to indicate higher or lower quality among the debts of the same rating. Investment Grade Ratings from AAA to BBB. there are special mutual funds called high-yield funds that . These debt securities are for people who can take high risk as the risk of default is considerably higher in comparison to investment-grade debt securities. D indicates that the borrower is in default. a debt security rated AA+ has better quality than AA. Globally.e.. or will most likely default. AAA is the best credit rating possible for a non-government debt security.is of lower quality than a rating of AA.Although it is not mandatory for a debt security to have a credit rating. the borrower needs to pay a higher interest rate to compensate for the higher risk. This rating indicates that the borrower will repay the principal and the interest on time and has adequate reserves to fulfill debt payments. BB+ and below) is considered speculative grade. Credit ratings also determine the rate at which the borrower can borrow from the market. Long-Term Debt Ratings- It refers to the debt wherein the maturity of the security is greater than one year. A debt security rating of AA.

The length of the scale is different for different ratings agencies. . The rating scale ranges from 1 (highest quality) to 5 (lowest quality). The use of the signs is more common in the longterm debt ratings than in short-term debt ratings. As of now. short-term debt ratings vary far more. there are no high-yield mutual funds in India. Long Term Credit Ratings From Rating Agencies in India.invest into these speculative-grade securities. The rating agency can use ‘+’ or ‘-‘ to indicate better or lower quality. PRIME FITCH AAA AA+ AA AAA+ A ABBB+ BBB BBBBB+ BB BBB+ B BC SPECULATIVE GRADE DEFAULT DANGEROUSLY SPECULATIVE D DEFAULT CRISIL AAA AA+ AA AAA+ A ABBB+ BBB BBBBB+ BB BBB+ B BC+ C CD NM CARE AAA AA+ AA AAA+ A ABBB+ BBB BBBBB+ BB BBB+ B BC+ C CD HIGH GRADE UPPER MEDIUM GRADE INVESTMENT GRADE LOWER MEDIUM GRADE NON INVESTMENT GRADE HIGHLY SPECULATIVE Short-Term Debt Ratings While long-term debt ratings are similar across the four ratings agencies.

Short term Credit Ratings From Rating Agencies in India FITCH F1+ F1 Best F2+ F2 Better F3 Average F4 Worse Worst CRISIL P1+ P1 P1P2+ P2 P2P3+ P3 P3P4 CARE PR1+ PR1 PR1PR2+ PR2 PR2PR3+ PR3 PR3PR4+ PR4 F5 P5 PR4PR5 ICRA A1+ A1 A2+ A2 A3+ A3 A4+ A4 A5 crisil competitorsicra care .

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