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About CARE

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Presentation Structure

� About CARE

� Range of rating & grading services

� CARE¶s Credit Rating Experience & International Perspective

� Why CARE?

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Our Services

� Credit Rating

� Research & Information Services

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Range of Rating & Grading Services

Banks and FI ratings

Sub-sovereign ratings

Structured Finance Ratings

Insurance/ CPA ratings

Infrastructure ratings

Corporate Governance ratings

Corporate ratings

Services

Construction GradingGrading of MTI

Fund credit Quality rating

SME/SSI ratingsIPO Grading

Issuer Rating

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Why CARE?

� Quality of Ratings

� Independent & Renowned  External Rating Committee

� Comparable Transition Matrix

� Impressive Track Record of more than 15 years

� Approved by RBI/SEBI/Other regulators

� Ratings widely accepted among market participants

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� Strong Rating Practice

� Wide array of rating products

� Leader in bank ratings

� Leader in sub-sovereign ratings

� Strong industry exposure

� Developing rating methodologies for new segments like Cooperatives,

Service sector, trading etc

Why CARE?

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� Capability

� Very critical considering the volume of cases

� Highest number of ratings within a shortest period of time

� Wide network of offices in all major metros

� Capable team of close to 100 analysts

� Fully aware of resource requirements

� Planning for productivity improvements/workflow modifications

Why CARE?

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CARE¶s Credit Rating Experience & International Perspective

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Ratings ± The International Perspective

� CARE has all along built its rating methodologies in congruence

with international best practices in the sector.

� CARE constantly tracks international developments in rating

analytics and research and incorporates the latest tools and

techniques of analysis in its methodologies.� As a founder member of ACRAA, CARE is regularly in dialogue

with international rating agencies to understand the latest

developments in the field of ratings.

� CARE analysts regularly attend international training

conferences on ratings / research to assimilate and incorporate the

 best practices in our ratings.

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Credit Rating Process

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Credit Ratings

Methodology

Business

Risk Profile

Analysis

Financial

Risk Profile

Analysis

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Business

Risk 

Country

Risk 

Company

Position

Industry

FactorsProfitability/ Peer Group

Comparisons

� Political

� Economic

� Industry ± Specific factors� Foreign exchange

� Industry Trends

� Industry Structure

� Market Size� Growth Potential

� Cyclicality

� Bases of Competition

� Changing Technology

� Operating Risk

�Regulatory

Environment

� Competitive Factors� Market position

� Keys to Success

� Size

� Diversification

� Management

� Validation of ³Company

Position´

� Trends

� Quality of Earnings& Analytical adjustments

� Peer Group Comparisons

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Financial

Risk 

Accounting

Cash Flow

Adequacy

GovernanceRisk 

Liquidity /Short-term

Factors

�  Accounting Regime

� Reporting & Disclosure�  Analytical adjustments

� Ownership

� Board of directors� Management practices

� Financial Strategy

� Risk Tolerance

�  Accounting Practices

� Internal controls

� Focus on debtservice capability

�  Analytical distinctions with

profitability

� Cash flow measures /

� ratios

� Operating sources & uses

Of liquidity

� Other potential calls on

Liquidity� Debt Characteristics

� Bank credit facilities

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