Credit Rating Advisory

Your credit rating defines your creditworthiness.

Decoding Credit Rating

Just like a student has to study the entire year and then appear an exam for a grade which decides if he will be moving to the higher class or not, credit rating serves this purpose for businesses. Your performance will be graded on a globally followed rating scale by approved and regulated agencies based on your debt or loan exposure or deposits that you have accepted .

In India, only RBI and SEBI approved agencies i.e. CRISIL, CARE, ICRA, India Ratings, Infomerics, Acuite and Brickworks are eligible to issue a credit rating. Your credit rating impacts the decisions of the lenders, investors and depositors whether you want to borrow funds, accept deposits or raise money via IPO. This rating is a snapshot of your eligibility to borrow or accept money, its' terms and your ability to repay.

Our streamlined process

Collecting information and data.
Rigorous study and data crunching which leaves us with suggestions or queries.
Communicating our findings with you, TRANSPARENTLY and HONESTLY.
Selection of rating agency.
Negotiation and Onboarding with the agency.
Communicating with the rating analysts, at all levels.
Handholding in the management discussion call between the rating team and you.
Evaluation of final rating rationale before it is released in public domain.
Press release of final rating rationale.

Long term rating scale

Rating	Risk level	Description
AAA	Highest safety	Highest degree of safety regarding timely servicing of financial obligations and carries the lowest credit risk.
AA	High safety	High degree of safety regarding timely servicing of financial obligations and carries very low credit risk.
A	Adequate safety	Adequate degree of safety regarding timely servicing of financial obligations and carries low credit risk.
BBB	Moderate safety	Moderate degree of safety regarding timely servicing of financial obligations and carries moderate credit risk.
BB	Moderate risk	Moderate risk of default regarding timely servicing of financial obligations.
B	High risk	High risk of default regarding timely servicing of financial obligations.
C	Very high risk	Very high risk of default regarding timely servicing of financial obligations.
D	Default	Already in default or expected to be in default soon.

Rating Scale

Your business is graded by the rating agencies after a duly defined analysis based on the type of borrowing or deposit your business is enjoying. The rating scale is a globally followed scale which varies for long term instruments, short term instruments, mutual funds, debt funds etc.

The most widely used rating facilities for long term instruments such as term loan from banks range from AAA to D where AAA denotes the highest level of safety and D denotes that the business has probably defaulted on its' repayments and lowest degree of safety for the lenders and investors.