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RATINGS PROCESS

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■ Step – 1: Initial Stage

(i) Agreement between Credit Rating Agency and the Company

(ii) Mandate to be given to the Credit Rating Agency by the Company

(iii) Credit Rating Agency assigns a team for the said working of rating 

■ Step – 2: Fact findings & analysis

(i) The CRA team receives initial information from the company and conduct basic research

(ii) The CRA team will have meetings with the representative of the Company and if required visit the company office

(iii) The CRA team will analyze the collected information and prepare a report 

■ Step – 3: Rating Finalization

(i) Preview meeting

(ii) Rating meeting

■ Step – 4:  Assign Rating Based on the information, the CRA will assign a credit rating to the Companyng

Step – 5: Communication to Client Company The CRA will communicate the rating and rationale of rating. The client company is not under obligation to accept the rating provided by the Credit Rating Agencies. 

In case of non – acceptance by the client company, the client company may request for review of assigned rating and the company may provide fresh inputs/clarifications to the Credit Rating Agency. Based on fresh inputs/clarification, the Credit Rating Agency satisfies itself then it can assign a new rating. 

■ Step – 6: Finalization of Credit Rating:

■ Step – 7: Surveillance and Monitoring: After assigning a rating, Credit Rating Agency monitors the overall performance of the issuer company and can also assign a new rating in case of any new development with regard to the financial health and other substantial matters.

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