Credit Ratings

Methodology

Business
Risk Profile
Analysis

Financial
Risk Profile
Analysis

Validation of Company
Position
Trends
Quality of Earnings
& Analytical adjustments
Peer Group Comparisons

Profitability
/ Peer Group
Comparisons

Competitive Factors
Market position
Keys to Success
Size
Diversification
Management

Country
Risk

Industry
Factors

Business
Risk

Company
Position

Political
Economic
Industry Specific factors
Foreign exchange

Industry Trends
Industry Structure
Market Size
Growth Potential
Competition
Changing Technology

Operating sources & uses

Of liquidity
Debt Characteristics
Bank credit facilities

Liquidity /
Short-term
Factors

Focus on debt
service capability
Analytical distinctions with
profitability
Cash flow measures /
ratios

Accounting

Accounting Regime
Reporting & Disclosure
Analytical adjustments

Governance
Risk

Financial
Risk

Cash Flow
Adequacy

Ownership
Board of directors
Management practices
Financial Strategy
Risk Tolerance
Accounting Practices
Internal controls

CRISIL(CREDIT RATING AND INFORMATION

SERVICES OF INDIA LTD.)
A global analytical company.
Incorporated in year 1987.
Provides ratings research and policy advisory services.
CRISIL is India's leading rating agency, and is the fourth largest in

the world.
Offerings-real Timenews, Analysed data , incisive insights & opinions

&expert advice.
So far CRISIL has 30000 debt instruments covering the entire debt

market.

DEBT OBLIGATIONS RATED BY CRISIL

INCLUDE

FUNCTIONS OF CRISIL

CRISIL LONG TERM RATING SCALE

CRISIL SHORT TERM RATING SCALE

ICRA : INVESTMENT INFORMATION & CREDIT

RATING AGENCY OF INDIA LIMITED.

ICRA was set up by IFCI on 16th january 1991.

A public limited company.
An authorized share capital of rs.10crores, rs. 5 crores is paid up.
To provide information & guidance to investors.
ICRAS major shareholders IFCI (26%).
Determines the credit risk associated with a debt instrument.

ICRA LONG TERM RATING SCALE

ICRA SHORT TERM RATING SCALE