The concept originated in US in

1895
New to INDIA(1990)
* A Symbolic Indicator to the
current opinion of a rating
agency of the relative capacity
of the issuer to service its debt
obligation in a timely fashion

* It is specific to debt
instrument
It is an analysis of the
credit risk associated
with a particular instrument and not with a
company

*It does not talk about overall

evaluation of the company but its
specific to that instrument and not with
a company
* it is not a recommendation to buy or
sell or hold an instrument
*the rating process is based on the
information provided by the issuer and
collected by analyst from different
sources
*the agency does not guarantee the
accuracy of the information on which the
rating is based

Objective
To provide guidance to
investors in determining
the credit risk associated
with a debt instrument

Benefits
1. superior information
2. calculated risk
3. encourages investment

Types of credit rating

Bond
Equity
Commercial paper
Sovereign

ratings
ratings
ratings
ratings

CRISIL, ICRA, CARE, ONICRA, FITCH &

SMERA.
CRISIL is the largest credit rating agency
in India, with a market share of greater
than 60%.
service rating agency offering its services
in manufacturing, service, financial and
SME sectors.
SMERA is the rating agency exclusively
established for rating of SMEs.

CRISIL(Credit Rating
Information Services of
India Ltd) is the largest
credit rating agency in
India. It was established in
1987.
The worlds largest rating
agency Standard & Poor's
now holds majority stake in
CRISIL.

Incorporated in 1993, Credit

Analysis and Research Limited
(CARE) is a credit rating,
research and advisory
committee promoted by
Industrial Development Bank of
India (IDBI), Canara Bank, Unit
Trust of India (UTI) and other
financial and lending
institutions. CARE has completed
over 7,564 rating assignments
since its inception in 1993.

ONICRA Credit Rating Agency

ONICRA was established in 1993 by Mr. Sonu
Mirchandani as a rating agency. It analyzes data
and provides rating solutions for Individuals and
Small and Medium Enterprises(SMEs).

Fitch Ratings
Fitch Ratings is a global rating agency
committed to providing the world's credit
markets with independent and prospective
credit opinions, research, and data. Fitch
Ratings is headquartered in New York and
London and is part of the Fitch Group.

ICRA(Investment
Information and Credit
Rating Agency of India
Ltd)was established in 1991
by leading Indian financial
institutions and commercial
banks. International credit
rating agency, Moodys, is
the largest shareholder.

Bond/Long-term ratings - Credit Ratings

CRISIL's long-term ratings reflect CRISIL's current opinion on
the 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
CRISIL rates a wide range of entities for long-term debt
obligations, which include:
Industrial companies,Banks,Non-banking financial companies
(NBFCs),Infrastructure entities,Microfinance
institutions,Insurance companies,Mutual funds,State
governments,Urban local bodies

Credit Ratings
Bonds/ LT instruments
CPs/ ST instruments
Bank Loan Ratings (Basel II)
SME Ratings
Real Estate Ratings
Business School Gradings
Other Ratings

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.
capital adequacy for banks, in 2007. The Basel
II
CRISIL rates the maximum number of
companies for their bank loans in India. It has,
so far, assigned ratings to the bank facilities
of more than 11,827 entities as on December
31, 2012
CRISIL has rated bank facilities of all types:
term loans, project loans, corporate loans,
general purpose loans, working capital
demand loans, cash credit facilities, and nonfund-based facilities, such as letters of credit
and bank guarantees.

Business School Gradings

Symbiosis Centre for Information Technology (SCIT),
Pune
Siva Sivani Institute of Management, Hyderabad
Foundation for Liberal and Management Education (FLA
ME),
Pune
AIMS Institute of Management Studies, Pune
TAPMI Manipal
Dr. Gaur Hari Singhania
Institute of Management and Research, Kanpur

Company Name

Industry

Instrument

Rating

Outlook

3M India Limited

Industrial Conglomerates

Non Convertible Debenture

CRISIL AAA

Stable

3S Infrastructure

Construction & Engineering

Term Loan Facilities

CRISIL B

Stable

3i Infotech Limited

IT Services

Cash Credit Limit

CRISIL D
CRISIL D

Term Loan Facilities

Commercial Paper

916 Epari Jeweller

Private Limited
Company Name

Textiles- Apparel & Luxury Goods

Industry

Short-Term Loan
Cash Credit Limit

Instrument

CRISIL D
CRISIL D

CRISIL BB-

Rating

Stable
Outlook

3M India Limited

Industrial Conglomerates

Non Convertible Debenture

CRISIL AAA

Stable

3S Infrastructure

Construction & Engineering

Term Loan Facilities

CRISIL B

Stable

3i Infotech Limited

IT Services

Cash Credit Limit

CRISIL D
CRISIL D

Term Loan Facilities

Commercial Paper
Short-Term Loan

CRISIL D
CRISIL D

The RatingCRISIL
symbols
RATINGS
AAA/FAAA/ = HIGHEST
AA/FAA = HIGH
A/FA = ADEQUATE
BBB = MODERATE
BB/FB = INADEQUATE

SAFETY
SAFETY
SAFETY
SAFETY
SAFETY

The Rating symbols

CARE
PR1
A1 = SUPERIOR
HIGHEST
PR2 = STRONG
SAFETY
PR3
= ADEQUATE
PR4 = RISK PRONE
A2
PR5==HIGH
DEFAULT

ICRA

SAFETY

A3 =
ADEQUATE
SAFETY
A4 = RISK
PRONE