ASSIGNMENT ON CREDIT RATING AGENCY:CRISIL AND ITS RATINGS OF 30 COMPANIES

NAME: PRIYA H. UTTANI ROLL NO.: 8 CLASS: MBA SEM 4(GIA) SUBJECT: SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT BATCH: 2010-2012 GUIDE: Dr. B.C.AJMERA SUBMITTED TO: DEPT. OF BUSINESS ADMINISTRATION

INTRODUCTION

A CRISIL rating reflects CRISIL's current opinion on the relative likelihood of timely payment of interest and principal on the rated obligation. It is an unbiased, objective, and independent opinion as to the issuer's capacity to meet its financial obligations. So far, CRISIL has rated 30,000 debt instruments, covering the entire debt market. The debt obligations rated by CRISIL include:

Non-convertible debentures/bonds/preference shares Commercial papers/certificates of deposits/short-term debt Fixed deposits Loans Structured debt

CRISIL Ratings' clientele includes all the industry majors - 23 of the BSE Sensex constituent companies and 39 of the NSE Nifty constituent companies, accounting for 80 per cent of the equity market capitalisation, are CRISIL's clients. CRISIL's credit ratings are

An opinion on probability of default on the rated obligation Forward looking Specific to the obligation being rated

But they are not

A comment on the issuer's general performance An indication of the potential price of the issuers' bonds or equity shares Indicative of the suitability of the issue to the investor A recommendation to buy/sell/hold a particular security A statutory or non-statutory audit of the issuer An opinion on the associates, affiliates, or group companies, or the promoters, directors, or officers of the issuer

CRISIL ratings are based on a robust and clearly articulated analytical framework, which ensures comprehensiveness, standardisation, comparability, and effective communication of the ratings assigned and of every timely rating action. The assessment is based on the highest standards of independence and analytical rigour.

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

CRISIL uses simple alphanumeric symbols to convey credit ratings. CRISIL assigns credit ratings to debt obligations on three basic scales: the long-term scale, the short-term scale, and the fixed deposit scale. To illustrate, CRISIL's long-term credit rating scale and the description associated with each category on the rating scale is given below:

Symbol (Rating category). AAA AA A BBB BB B C D

Description (with regard to the likelihood of meeting the debt obligations on time) Highest Safety High Safety Adequate Safety Moderate Safety Inadequate Safety High Risk Substantial Risk Default

CRISIL's Core Businesses

Ratings Global Research & Analytics: (Irevna, Pipal Research) Research

Capital Markets Infrastructure Advisory CRISIL Risk Solutions

CRISIL Rating Process

CRISIL's ratings process is designed to ensure that all ratings are based on the highest standards of independence and analytical rigour. From the initial meeting with the management to the assignment of the rating, the rating process normally takes three to four weeks. However, CRISIL has sometimes arrived at rating decisions in shorter timeframes, to meet urgent requirements. The process of rating starts with a rating request from the issuer, and the signing of a rating agreement. CRISIL employs a multi-layered, decision-making process in assigning a rating.

detailed

flow

chart

of

CRISIL's

rating

process

is

as

below:

Corporate Credit Rating Scale: CCR AAA ("CCR Triple A") A 'CCR AAA' rating indicates Highest degree of strength with regard to honoring debt obligations.

CCR AA A 'CCR AA' rating indicates High degree of strength with regard to ("CCR Double A") honoring debt obligations. CCR A CCR BBB CCR BB CCR B CCR C CCR D A 'CCR A' rating indicates Adequate degree of strength with regard to honoring debt obligations. A 'CCR BBB' rating indicates Moderate degree of strength with regard to honoring debt obligations. A 'CCR BB' rating indicates Inadequate degree of strength with regard to honoring debt obligations. A 'CCR B' rating indicates High Risk and greater susceptibility with regard to honoring debt obligations. A 'CCR C' rating indicates Substantial Risk with regard to honoring debt obligations. A 'CCR D' rating indicates that the entity is in Default of some or all of its debt obligations. A 'CCR SD' rating indicates that the entity has Selectively Defaulted on a specific issue or class of debt obligations, but will continue to meet its payment obligations on other issues or classes of debt obligations. CRISIL may apply '+' (plus) or '-' (minus) modifiers for ratings from 'CCR AA' to 'CCR C' to reflect comparative standing within the category.

CCR SD

Note:

Allahabad Bank Rating Outstanding Industry : Banks Instrument Category Long Term Short Term Rating CRISIL AA+ CRISIL A1+

as Rating Outlook Stable

on Instrument Details view view

24-Jan-2012

Raymond Apparel Limited Rating Outstanding Industry : Specialty Retail Instrument Category Long Term Rating CRISIL A+

as Rating Outlook Stable

on Instrument Details

24-Jan-2012

Reliable Autotech Pvt. Ltd. Rating Outstanding Industry : Auto Components Instrument Category Long Term Short Term Rating CRISIL B CRISIL A4

as Rating Outlook Stable

on Instrument Details view view

24-Jan-2012

Reliance Capital Ltd Rating Outstanding Industry : Non Banking Financial Company Instrument Category Short Term Rating CRISIL A1+

as

on Instrument Details view

24-Jan-2012

Rating Outlook

Structured Obligation

CRISIL AAA(SO)

view

Ranbaxy Laboratories Ltd Rating Outstanding Industry : Pharmaceuticals Instrument Category Short Term Rating CRISIL A1+

as Rating Outlook

on Instrument Details

24-Jan-2012

Reliance Fabrications Private Limited Rating Outstanding Industry : Machinery Instrument Category Long Term Short Term Rating CRISIL B+ CRISIL A4

as Rating Outlook Stable

on Instrument Details view view

24-Jan-2012

KANSAI NEROLAC PAINTS LIMITED Rs.600 Million Cash Credit Rs.100 Million Non-Convertible Debenture Issue Rs.300 Million Commercial Paper Programme

CRISIL AAA/Stable (Reaffirmed) CRISIL AAA/Stable (Reaffirmed) CRISIL A1+ (Reaffirmed)

ABC Paper Limited Rating Outstanding Industry : Paper & Forest Products Instrument Category Long Term Short Term Rating Rationales Rating CRISIL BBBCRISIL A3

as Rating Outlook Negative

on Instrument Details view view

24-Jan-2012

Adani Power Limited Rating Outstanding as Industry : Independent Power Producers & Energy Traders Instrument Category Long Term Rating CRISIL ARating Outlook Stable

on

24-Jan-2012

Instrument Details view

Ashok Leyland Ltd. Rating Outstanding Industry : Automobiles Instrument Category Long Term Short Term Rating CRISIL AACRISIL A1+

as Rating Outlook Stable

on Instrument Details view view

24-Jan-2012

V Mart Retail Limited Rating Outstanding Industry : Specialty Retail Instrument Category Long Term Short Term Rating CRISIL BBB CRISIL A3+

as Rating Outlook Stable

on Instrument Details view

24-Jan-2012

Reliance Infrastructure Limited Rating Outstanding as on 25-Jan-2012 Industry : Electric Utilities Instrument Category Long Term Short Term Rating CRISIL AA+ CRISIL A1+ Rating Outlook Negative Instrument Details view

Reliance Jute Mills (International) Limited Rating Outstanding as on 25-Jan-2012 Industry : Textiles- Apparel & Luxury Goods Instrument Category Long Term Short Term Rating CRISIL BB CRISIL A4+ Rating Outlook Stable Instrument Details view view

Reliance Industries Limited Rating Outstanding as on 25-Jan-2012 Industry : Oil Gas & Consumable Fuels Instrument Category Long Term Short Term Rating CRISIL AAA CRISIL A1+ Rating Outlook Stable Instrument Details view

Reliance Ports And Terminals Limited Rating Outstanding as on 25-Jan-2012 Industry : Transportation Infrastructure Instrument Category Long Term Short Term Rating CRISIL AAA CRISIL AAA CRISIL A1+ Rating Outlook Stable Instrument Details view view

Remsons Industries Ltd. Rating Outstanding as on 25-Jan-2012 Industry : Auto Components Instrument Category Long Term Short Term Rating CRISIL BB ^ CRISIL A4+ ^ Rating Outlook Stable Instrument Details view

Reliance Ports And Terminals Limited Rating Outstanding as on 25-Jan-2012 Industry : Transportation Infrastructure Instrument Category Long Term Short Term Rating CRISIL AAA CRISIL AAA CRISIL A1+ Rating Outlook Stable Instrument Details view view

Reliance Utilities and Power Private Limited Rating Outstanding as on 25-Jan-2012 Industry : Independent Power Producers & Energy Traders Instrument Category Long Term Rating CRISIL AAA Rating Outlook Stable Instrument Details view

Religare Securities Limited Rating Outstanding as on 25-Jan-2012 Industry : Broking Company Instrument Category Short Term Rating CRISIL A1+ Rating Outlook Instrument Details

HDFC Bank Ltd. Rating Outstanding as on 25-Jan-2012 Industry : Banks Instrument Category Long Term Structured Obligation Rating CRISIL AAA CRISIL AAA(SO) CRISIL AAA(SO) prov. Rating Outlook Stable Instrument Details view view view

Governance and Value Creation Rating

CRISIL GVC Level 1

HDFC Securities Limited Rating Outstanding as on 25-Jan-2012 Industry : Broking Company Instrument Category Long Term Short Term Rating CRISIL AAA CRISIL A1+ Rating Outlook Stable Instrument Details view

ICICI Bank Limited Rating Outstanding as on 25-Jan-2012 Industry : Banks Instrument Category Long Term Structured Obligation Rating CRISIL AAA CRISIL AAA CRISIL AAA(SO) prov. CRISIL AAA(SO) CRISIL AAA(SO) CRISIL AA+ (SO) CRISIL AA(SO) CRISIL BBB+ (SO) CRISIL BBB(SO) prov. CRISIL D(SO) CRISIL A1+ (SO) prov. Stable Stable Rating Outlook Instrument Details view view view view view view view view view view view

CRISIL A1+ (SO)

view

ICICI Securities Limited Rating Outstanding as on 25-Jan-2012 Industry : Broking Company Instrument Category Long Term Short Term Rating CRISIL AAA CRISIL A1+ Rating Outlook Stable Instrument Details view view

IDBI Bank Limited Rating Outstanding as on 25-Jan-2012 Industry : Banks Instrument Category Long Term Fixed Deposit Short Term Structured Obligation Rating CRISIL AA+ CRISIL AA FAAA CRISIL A1+ CRISIL A1+ (SO) Rating Outlook Stable Stable Stable Instrument Details view view view view view

ING Vysya Bank Limited Rating Outstanding as on 25-Jan-2012 Industry : Banks Instrument Category Long Term Fixed Deposit Short Term Rating CRISIL AA FAAA ^ CRISIL A1+ Rating Outlook Stable Stable Instrument Details view view

Tata Capital Housing Finance Limited Rating Outstanding as on 25-Jan-2012 Industry : Housing Finance Company Instrument Category Rating Rating Instrument

Outlook Long Term Short Term CRISIL AA+ CRISIL A1+ Stable

Details view

Tata Motors Limited Rating Outstanding as on 25-Jan-2012 Industry : Automobiles Instrument Category Long Term Rating CRISIL AARating Outlook Stable Instrument Details view