A CRISIL rating reflects CRISIL's current opinion on the relative likelihood of timely payment of interest and principal on the rated obligation.

CRISIL:CRADIT RATING INFORMATION SERVIC OF INDIA Ltd.
• • INCORPORATED IN 1987. COMMENCED IN 1988. SET UP BY: ICICI limited, UTI, LIC, GIC, UNITED INDIA INSURANCE COMPANY & DOMESTIC AND FOREIGN BANKS. CRISIL RATES rupee denominated debt instruments, preference shares, FD, Commercial Papers, Structured obligation etc. CRISIL rates a wide range of entities, including: – Industrial companies – Banks – Non-banking financial companies (NBFCs) – Infrastructure entities – Microfinance institutions – Insurance companies – Mutual funds – State governments – Urban local bodies

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Subsidiaries
• • • • • • • • • • • CRIs Infac (CRISIL Research and Information Services) Crisil.com CRISIL Market Wire (CMW) Global Data Services of India Ltd (GDS) CRISIL Infrastructure Advisory Gas Strategies Group Limited of Gas Information and Solution CRISIL centre for Economic Research. CRISIL Investment and Risk Management services. India Index Services and Products Limited(IISL) Irevna CRISIL CariCRISCRISIL

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safety Speculative Grade • BB-inadequate safety. C-substantial risk.DEBENTURE RATING SYSTEM High Investment Grade • AAA-highest safety. Investment Grade • A-adequate safety. B-high risk. D-default. BBB-moderate . AA-high safety. .

adequate safety. FAA. FC.inadequate safety. FB.highest safety.default. FD.FIXED DEPOSIT RATING SYMBOLS. FAAA. .high safety.high risk. FA.

STRONG. P. .4.RATING FOR SHORT TERM INSTRUMENT. VERY STRONG.5. DEFAULT. P.3. LESS FEVOURABLE. ADEQUATE. P.1. P.2. P.

D(SO)-default. AA(SO)-high safety. . BBB(SO)-moderate .CRISIL’s RATING SYMBOLS FOR STRUCTURED OBLIGATIONS (SO) High Investment Grade • AAA(SO)-highest safety. C(SO)-substantial risk.safety Speculative Grade • BB(SO)-inadequate safety. Investment Grade • A(SO)-adequate safety. B(SO)-high risk.

adequate ability. . Ability to specify and built to agree to quality levels and transfer clear title within stipulated time period. high ability. PA-1. PA-3. adequate ability.CRISIL’s RATING SYMBOLS FOR REAL ESTAE DEVELOPERS’ PROJECTS. inability. PA-2. highest ability. PA-4. PA-5.

CRISIL FOREIGN STRUCTRED OBLIGATIONS (FSO) RATING SYSTEM. C(fso)-substantial risk.safety Speculative Grade • BB(fso)-inadequate safety. BBB(fso)-moderate . AA(fso)-high safety. Investment Grade • A(fso)-adequate safety. D(fso)-default. . B(fso)-high risk. High Investment Grade • AAA(fso)-highest safety.

High risk-BBr. High safety-AAr. Moderate safety-BBBr.CRISIL RATING SCALE FOR INSTRUMENT CARRING NONCREDIT RISK Highest safety-AAAr. High risk-Br. . Substantial risk-Cr. Adequate safety-Ar. Default-Dr.

vulnerable to default. • AA. • BBB.default. Vulnerable rating indicates insurance companies whose financial capacity to meet policy holder obligation is vulnerable to adverse economic and underwriting condition. • A. • C.inadequate strength. • B.susceptibility to default.high strength.CRADIT RATING SCALE FOR FINANCIAL STRENGTH RATING(FSR) SECURE RATINGS • AAA. . • D.adequate strength. VULNERABLE RATINGS • BB.moderate strength.highest strength.

very strongprotection. BBBf. Cf. .uncertain protection. BBf. Af.CRISIL BOND FUND RATING SYSEM. Protection against loss from credit default.adequate protection. AAAf.vulnerable to credit default.strong protection. AAf.moderate protection.

GOOD.UNSATISFECTORY.CRISIL RATING SYSTEM FOR REAL ESTAE DEVELOPERS. .VERY GOOD. DA1. DA2. DA5. DA4. DA3.POOR.EXCELLENT.

LEVEL 8.CRISIL GRADING SCALE OFR GOVERNANCE AND VALUE CREATION.MODERATE. LEVEL 3.STRONG. LEVEL 2. LEVEL 5.HIGH.POOR. LEVEL 4.LOWEST. .ADEQUATE. LEVEL 1.HIGHEST.INADEQUATE. LEVEL 7. LEVEL 6.

CRISIL GRADING SCALE FOR HEALTHCARE INSTITUTIONS. GRADE A-VERY GOOD QUALITY.GOOD QUALITY. REFETECTS QUALITY OF DELIVERED PATIENT CARE AND STANDERDS OF HEALTHCARE INDUSTRY. GRADE D. GRADE C.POOR QUALITY. . GRADE B.AVERAGE QUALITY.

7.9. POOR CAPACITY. • 5.12.6.13.4. • 8.10. • 11.3. . • 2. • 1. ADEQUATE CAPACITY. INADEQUATE CAPACITY. STRONG CAPACITY. VERY DTRONG CAPACITY.CRISIL RATING SYMBOLS FOR CREDIT ASSESSMENTS.

GRADE I. GRADE IV.HIGH CERTAINITY. GRADE I.CRISIL RATING FOR COLLECTIVE INVESTMENT SCHEME. GRADE V.INADEQUATE CERTAINITY. GRADE III. II. GRADE II.MODERATE CERTAINITY.HIGH UNCERTAINITY. V : NON-INVESTMENT GRADES .ADEQUATE CERTAINITY. III : INVESTMENT GRADES. GRADE IV.

Investment Information and Credit Rating Agency of India (ICRA) .

10 crores. It is a public limited company with an authorized share capital of Rs. . 5 crores is paid up. Rs. commercial banks and financial services and Credit Rating Agency. ICRA Limited is an Association of Moody's Investors Service and an independent and professional company.Investment Information and Credit Rating Agency of India (ICRA) ICRA was set up by IFCI (industrial finance corporation of India) on 16th January 1991 and commenced its commercial activities from 31st August by leading financial/investment institutions.

and the balance by UTI. UCO Bank and banks (SBI) ICRA launch two services in 1992 a) Credit Assessment b) General Assessment Today.ICRA’s major shareholders IFCI (26%). ICRA is a full-service credit rating agency with its shares listed on the Bombay Stock Exchange and the National Stock Exchange . Central Bank of India. GIC. LIC. Bank of Baroda. PNB.

•To assist investors in making well informed investment decision • To enable banks. .OBJECTIVES OF ICRA •To access the credit instrument and award it a grade consonant to the risk associated with such instrument. investment bankers and brokers in placing debt with investors by providing them with a marketing tool •To assist issuers in raising funds from a wider investors base • To provide regulators with a market driven system to encourage the healthy growth of the capital markets in a disciplined manner without costing an additional burden on the Government for this purpose.

investors. confidence and trust of the constituents by demonstrating that its methodology is transparent and its ratings are independent and consistent. • Aggressively focus on business development would result in a significant increase in the volume of rating assignments. and financial institutions. . • Win the credibility. regulators.STRATEGIES OF ICRA • Create awareness of the rating concept and benefits among issuers.

Bonds and Preference shares-Rating Symbols LAAA : Highest Safety LAA: High Safety LA: Adequate Safety LBBB: Moderate Safety LBB :Inadequate Safety LB: Risk prone LC: Substantial Risk LD: Default.Rating symbols Long term Debentures. Extremely speculative .

Medium term including Fixed deposits Rating Symbols MAAA: Highest Safety MAA: High Safety MA : Adequate Safety MB : Inadequate Safety MC : Risk prone MD : Default Short-term including CPs A-1: Highest Safety A-2: High Safety A-3: Adequate Safety A-4: Risk prone A-5: Default .

 Rating of Debt funds MfAAA: Highest Quality mfAA : High Quality mfA : Adequate Quality mfBBB : Moderate Quality mfBB :inadequate Quality mfB : poor Quality  Equity grade starting from ER1 : Excellent Earning to ER6 : Poor Earnings .

(ICSAP) ICRA Online Limited (ICRON) ICRA Indonesia (ICRAIndo) ICRA Lanka Limited (ICRALanka) Pragati Development Consulting Services Limited (PDCSL) IMaCS Virtus Global Partners.Subsidiaries of ICRA GROUP ICRA Credit Rating/Grading Management Consulting Software Solutions and Services Information Services/KPO ICRA Limited (ICRA) ICRA Management Consulting Services Limited (IMaCS) ICRA Techno Analytics Limited (ICTEAS) ICRA Sapphire Inc. (IVGP) . Inc.

Issuer Rating of corporate entities. banks. that is. a subsidiary of ICRA Limited (ICRA). ICRA and its subsidiaries. in 2010. finance companies and financial institutions. including Credit Rating of rupiah-denominated debt instruments issued by manufacturing companies. ICRAIndo offers a wide range of Rating services. along with their subsidiaries. service companies. Group ICRA.Together. the Capital Market and Financial Institution Supervisory Board. obtained its operating licence from Bapepam-LK. banks & financial institutions. infrastructure sector companies . form the ICRA Group of Companies.  ICRA Indonesia (ICRAIndo).

Its Rating focus is on entities mainly in the financial sector. medium-. Grading. and short-term debt instruments issued by borrowers from various sectors of the economy. . besides long-. putting into use parent ICRA’s accumulated experience in the areas of Credit Rating. and Investment Information. ICRALanka offers a wide range of Rating services in the Sri Lankan market.

hotels.EXPERTISE AND COVERAGE Over the years. textiles. oil and gas. insurance companies. among others. and transportation . and financial services companies • Infrastructure and utilities: including power. The key areas of specialization include. metals and mining • Public finance sector: including State Governments. ICRA has built up in-depth expertise in diverse sectors of the Indian economy besides the economy itself. cement and building materials. the following: • Economic research • Corporate sector: including automobiles. pharmaceuticals. and municipal and urban local bodies • Financial sector: including banks.

• Marketing strategies .THE RATING METHODOLOGY ICRA considers all relevant factors that have a bearing on the future cash generation and debt servicing ability of the issuer. These factors include: • industry characteristics • regulations • competitive position of the issuer • operational efficiency • management quality • commitment to new projects and other associate companies • funding policies of the issuer.

it is the relative comfort on the level and quality of the issuer's cash flows to service obligations that determines its rating. Primarily. .A detailed analysis of past financial statements is made to assess performance under "real world" business dynamics. Estimates of future earnings over the next 3-5 years under various sensitivity scenarios are drawn up and evaluated against the claims and obligations that require servicing.

Credit analysis and research limited .

• The Securities and Exchange Board of India has registered CARE as per the Securities & Exchange Board of India (Credit Rating Agencies) Regulations.Establishment and history • Credit Analysis & Research Limited (CARE) was established in April 1993. . • CARE has executed 3175 rating deals till the 31st of March 2008. It is regarded as a top credit rating agency of India. It has been set up by IDBI in collaboration with some Banks and financial institutions. • CARE is backed by a number of top Indian financial institutions.1999.

Supporting institutes • The ratings of Credit Analysis & Research Limited (Care) are acknowledged by the following entities:  Government of India  Securities and Exchange Board of India  Reserve Bank of India .

Major shareholders .

mergers. The credit reports worked out by CARE are instrumental in making decisions pertaining to collaborations. acquisitions. 2) Conducting studies in different sectors . joint ventures.Main services • Advisory services : 1) Preparing credit reports: These credit reports are availed for different corporate houses.

Ratings of various entities • • • • • • • • Corporate banks Financial institutions (FIs) Public sector undertakings (PSUs) Non-banking finance companies (NBFCs) SMEs State government bodies Municipal corporations Micro-finance institutions .

Rating services • Structured obligations • Commercial paper • Debentures • Fixed deposits • Bonds .

Additional Rating/Grading Services • • • • • • • Corporate Governance Rating Rating of Parallel Markets Fund Credit Quality Ratings Rating of Collective Investment Scheme Insurance Rating Construction Grading IPO Grading .

banking and FIs. .Rating committee • CARE has independent rating committee comprising reputed professionals with varied experience in industry.

Rating symbols (Long and medium term instruments) SYMBOLS CARE AAA CARE AA CARE A CARE BBB CARE BB CARE B CARE C CARE D RATING DEFINITION HIGHEST DEGREE OF SAFETY HIGH DEGREE OF SAFETY ADEQUATE DEGREE OF SAFETY MODERATE DEGREE OF SAFETY MODERATE RISK OF DEFAULT HIGH RISK OF DEFAULT VERY HIGH RISK OF DEFAULT IN DEFAULT OR EXPECTED TO BE IN DEFAULT SOON .

Short term instruments SYMBOLS RATING DEFINITION CARE A1 CARE A2 CARE A3 CARE A4 CARE D VERY STRONG DEGREE OF SAFETY STRONG DEGREE OF SAFETY MODERATE DEGREE OF SAFETY MINIMAL DEGREE OF SAFETY IN DEFAULT OR EXPECTED TO BE IN DEFAULT SOON .

Limitations • These ratings do not recommend to invest. . • Rating essentially is an opinion on the relative quality of credit risk. • They do not take into account many aspect which influence investment decision.

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