Corporate Sector Ratings

Crisil pioneered the first corporate sector rating in 1988. Today, one out of every two companies in India is rated by Crisil Ratings. We have an unmatched coverage of about 67 sectors belonging to 29 industry groups.

Our probability of default approach on a standardised 20-point rating scale is approved by the Securities and Exchange Board of India and the Reserve Bank of India.

Crisil Ratings follows a three pronged approach to arrive at the standalone credit rating of a given firm, comprising evaluation of:

• Business risk - factors in industry risk, market position, and operating efficiency of the entity.
• Management risk - considers competence, integrity and risk appetite of the firm’s management.
  
• Financial risk - assesses accounting quality, present and future financial position, cash flows, and financial flexibility of the firm. Project based risks are also factored in at this stage.
  

Finally, the support obtained from a parent, group, or joint venture(s) is considered, to arrive at the overall credit rating.

Over and above this primary approach, our analysis takes into account sector specific nuances. We have so far published detailed rating criteria for 38 industries in the manufacturing and service sector and infrastructure sector.
 

Crisil Ratings offers a wide palette of corporate sector instrument ratings including:

• Bank loan ratings
  
• Long-term debt instruments such as bonds, non-convertible debentures (NCDs), and preference shares
  
• Short-term debt instruments such as commercial papers (CPs) and short-term NCDs
  
• Fixed deposits (FDs)
  

The methodology and rating framework adopted by Crisil Ratings for evaluating the credit risk of various instruments issued by Indian corporates is largely similar. However, we take care to apply any additional criteria, as appropriate, to capture the nuances of the particular instrument being rated. A detailed look at our offerings: