FDs and Other Instruments

Crisil also rates FD programmes of corporates in the non-financial sector with contracted maturity of more than a year on a 14-point rating scale (FAAA to FD). 

Crisil employs a dedicated rating scale for FDs. Crisil believes there is a strong linkage between the rating on an issuer’s FD programme and the issuer’s own long-term credit rating, which reflects the fundamental credit quality of the issuer, and factors in the issuer’s funding sources (including FDs), debt repayment profile, and liquidity. Thus, Crisil derives an issuer’s FD rating from its long-term rating, based on a mapping framework. The issuer’s liquidity, the programme’s granularity, staggered maturity profile, and renewal rate, are all factored in.