Credit Rating Agencies

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CREDIT RATING AGENCIES IN INDIA & INTERNATIONAL AGENCIES
CRISIL

CRISIL is India's leading rating agency, and is thefourth largest in the world.  With over a 60% share of the Indian Ratings market, CRISIL Ratings is the agency of choice for issuers and investors. CRISIL Ratings is a full service rating agency that offers a comprehensive range of rating services. CRISIL Ratings provides the most reliable opinions on risk by combining its understanding of risk and the science of building risk frameworks with a contextual understand in of business.

• The principal objective of CRISIL is to rate the debt obligations of Indian companies .Its rating guides the investors about the risk of timely payment of interest and principal on a particular debt instrument.

• CRISIL's rating process and rating committee are designed to ensure that all assigned ratings are based on the highest standards of independence and analytical rigor.

• The rating committee comprises members who have the professional competence to meaningfully assess the credit analysis that underlies the rating, and have no interest in the entity being rated. A team of analysts carries out the credit • Analysis.

Credit Rating Symbols

High Investment Grades:
AAA (triple A): Highest Safety
AA (double A): High Safety
Investment Grades:
A: Adequate Safety
BBB (triple B): Moderate Safety
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. 

A detailed flow chart of CRISIL's rating process is as below: [pic]

ONICRA Rating

ONICRA Rating is a comprehensive assessment of the enterprise, taking into consideration the overall financial performance (profitability and growth ratios, gearing levels, liquidity ratios, etc - size and industry specific) and non-financial performance (management experience and qualifications, certifications, customer and supplier base, constitution, etc.) of the MSME. 

Onicra Credit Rating Agency is one of the leading Credit and Performance Rating agencies in India. It provides ratings, risk assessment and analytical solutions to Individuals, MSMEs and Corporates. 

These services enable the lender or service provider to make smart, value based decisions on the Individuals, MSMEs and corporates by providing them essential information that includes financial, operational, productivity and 360 degree analysis, thus providing a holistic view about the entity.

Onicra’s ratings process is designed to ensure that all ratings are based on the highest standards of independence and analytical rigor.  Onicra employs a multi-layered, decision-making process in assigning a rating. 

Rating process begins with the receipt of rating mandate along with the application form and ends with the dispatch of the Rating report and Rating certificate. The Rating process in brief is enumerated below:

[pic]

Rating Services:

• Micro, Small and Medium Enterprises Rating

Small & medium firms play a key role in transition and developing countries. These firms typically account for more than 90% of all firms outside the agricultural sector, constitute a major source of employment and generate significant domestic and export earnings.

• Vendor & Associate Rating (VAR)

The Indian economy is gathering momentum and many corporates are finding it difficult to identify the right mix of business associates to work with. The Vendor & Associate rating service provides...
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