CRISIL

Naveen Joy

CRISIL
RATINGS, RESEARCH, RISK AND POLICY ADVISORY COMPANY Make markets function better Help clients mitigate and manage their business & financial risks Help shape public policy

CREDIT RATING
relative likelihood of timely payment of interest and principal on the rated obligation CRISIL's credit ratings are An opinion on probability of default on the rated obligation Forward looking Specific to the obligation being rated

CRISIL's credit ratings are An opinion on probability of default on the rated obligation Forward looking Specific to the obligation being rated

LONG-TERM RATINGS
relative safety of timely payment of interest and principal on the rated financial obligations which have an originally contracted maturity of more than one year. The long-term debt obligations typically rated by CRISIL include Non-convertible debentures/Bonds/Preference shares,Fixed deposits,Loans,Structured debt

SHORT-TERM INSTRUMENT
relative safety of timely payment of interest and principal on the rated financial obligations, which have an originally contracted maturity of less than one year. . short-term debt obligations typically rated by CRISIL include Non-convertible debentures,Inter corporate deposits,Commercial papers/certificates of deposits/short-term debt ,Fixed deposits,Loans,Structured debt

STRUCTURED FINANCE/PTCS

the relative degree of risk associated with timely payment of financial obligations on the PTCs as per the terms of the securitisation transaction CRISIL rates structured finance instruments/PTCs issued by a wide range of entities, which include ,Banks,Non-banking financial companies (NBFCs),Infrastructure entities,Microfinance institutions,Urban local bodies

BANK LOAN RATINGS (BASEL II)

A bank loan rating indicates the degree of risk regarding timely payment of the bank facility being rated; the facility includes principal and interest, if any, on the principal.

LT scale AAA (Triple A) Highest Safety

ST Scale

Fixed deposits FAAA ("F Triple A") Highest Safety

P1

AA (Double A) High Safety A Adequate Safety BBB (Triple B) Moderate Safety BB (Double B) Inadequate Safety B High Risk C Substantial Risk D Default NM Not Meaningful

P2

FAA ("F Double A") High Safety FA Adequate Safety FB Inadequate Safety

P3

P4 P5

FC High Risk

NM

FD Default NM Not Meaningful

SME RATINGS

pioneered the concept of ratings for the SME sector in India presently, has the largest number of ratings on the SME sector in the world

CRISIL SME Rating SME 1 SME 2 SME 3 SME 4 SME 5 SME 6 SME 7 SME 8

Definition Highest High Above Average Average Below Average Inadequate Poor Default

REAL ESTATE RATINGS

CRISIL provides third-party opinion to real estate National Developer Ratings Real Estate Star Ratings

DA1 Excellent

The Developer's ability to execute real estate projects as per the specified quality level and within the stipulated time schedule, and ability to transfer clean title isExcellent. The Developer's ability to execute real estate projects as per the specified quality level and within the stipulated time schedule, and ability to transfer clean title isVery Good. The Developer's ability to execute real estate projects as per the specified quality level and within the stipulated time schedule, and ability to transfer clean title isGood. The Developer's ability to execute real estate projects as per the specified quality level and within the stipulated time schedule, and ability to transfer clean title isBelow Average.

DA2 Very Good

DA3 Good

DA4 Below Average DA5 Poor

BROKER QUALITY GRADINGS

A CRISIL Broker Grading is an opinion on the quality of operations and services provided by the graded stock broker. expressed on a five-point scale from 'BQ1' to 'BQ5', with 'BQ1' being the highest.

FINANCIAL STRENGTH RATINGS FOR INSURANCE COMPANIES assess an insurance company's ability to meet policyholder obligation not recommendations to purchase or discontinue a policy, contract, or security issued by an insurance company, nor are they guarantees of financial strength.

AAA

Reflects Highest Financial Strength to meet policyholder obligations. Any adverse change in circumstances is most unlikely to affect the fundamentally strong position of the company. Reflects High Financial Strength to meet policyholder obligations. Companies rated in this category are only marginally weaker than the 'AAA' rated insurance companies. Reflects Adequate Financial Strength to meet policyholder obligations. However, change in circumstances can adversely affect such companies more than those in the higher rating categories.

AA

BBB Reflects Moderate Financial Strength to meet policyholder obligations. However, changing circumstances are more likely to lead to a weakened capacity to meet policyholder obligations than in the higher rating categories. BB

Reflects Inadequate Financial Strength to meet policyholder obligations. Companies rated in this category face uncertainties which could lead to inadequate capacity to meet their policyholder obligations.

Reflects Greater Susceptibility to default on policyholder obligations. While current obligations are being met, adverse business or economic conditions would lead to a lack of ability or willingness to meet policyholder obligations. Vulnerable to default. Policyholder obligations can be met only if favourable circumstances prevail. Default.

CRISIL MARITIME GRADINGS

To help maritime institutes/colleges impart quality training and education, and implement the best practices
Scale Grade 1: Grade 2: Grade 3: Grade 4: Grade 5:

MFI GRADING AND DIAGNOSTIC SERVICES

Microfinance involves providing credit, thrift, and other financial services and products to the economically underprivileged, to enable them to raise their income levels and living standards assigned on an eight-point scale - mfR1 (highest grading) to mfR8 (lowest grading). There are no individual definitions for each grading.

OTHER RATINGS
Project Credit Ratings: independent opinion on the standalone risks of project Recovery Risk Ratings: CRISIL's opinion on the recoverability on the rated instrument over the long term, post default.