Recovery Risk Ratings
Recovery Risk Ratings indicate the variability in the extent of recovery from a loan, post default. Our recovery risk rating gives an indication of loss given a default.
The rating conveys the opinion of Crisil Ratings on the recoverability on the rated instrument over the long term, post default.
The rating is not a comment on the timeliness of payment.
The key drivers of analysis are:
- Collateral coverage
- Quality of assets
- Seniority of the instrument
Rating Scale
Rating | Implied Recovery | Description |
---|---|---|
RR1+ | More than 150% | Present value of expected recoveries is more than 150% of the face value of outstanding SRs |
RR1 | More than 100% and up to 150% | Range of present value of expected recoveries is more than 100% and up to 150% of the face value of outstanding SRs |
RR2 | More than 75% and up to 100% | Range of present value of expected recoveries is more than 75% and up to 100% of the face value of outstanding SRs |
RR3 | More than 50% and up to 75% | Range of present value of expected recoveries is more than 50% and up to 75% of the face value of outstanding SRs |
RR4 | More than 25% and up to 50% | Range of present value of expected recoveries is more than 25% and up to 50% of the face value of outstanding SRs |
RR5 | Up to 25% | Range of present value of expected recoveries is up to 25% of the face value of outstanding SRs |