Date post: | 02-Nov-2014 |
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Dimple Punjabi Roll No.01Sneha Rijhwani Roll No.02Harsha Matta Roll No.10Yashoda Gehani Roll No.11Deepa Sukhwani Roll No.09Sheetal Ludhwani Roll No.40Anisha Vaswani Roll No.41Dhirti Makhija Roll No.42
Credit Ratings Methodology
Business Risk Profile
Analysis
FinancialRisk Profile
Analysis
Business Risk
Country Risk
Company Position
Industry Factors
Profitability / Peer GroupComparisons
• Political • Economic• Industry – Specific factors• Foreign exchange
• Industry Trends• Industry Structure• Market Size• Growth Potential• Competition• Changing Technology
• Competitive Factors• Market position• Keys to Success• Size• Diversification• Management
• Validation of “Company Position”
• Trends• Quality of Earnings
& Analytical adjustments• Peer Group Comparisons
FinancialRisk
Accounting
Cash Flow Adequacy
Governance Risk
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 debt service capability
• Analytical distinctions with profitability
• Cash flow measures / • ratios
• Operating sources & uses Of liquidity
• Debt Characteristics• Bank credit facilities
CRISIL(CREDIT RATING AND INFORMATION SERVICES OF INDIA LTD.)
A global analytical company.
Incorporated in year 1987.
Provides ratings research and policy advisory services.
CRISIL is India's leading rating agency, and is the fourth largest in
the world.
Offerings-real Timenews, Analysed data , incisive insights & opinions
&expert advice.
So far CRISIL has 30000 debt instruments covering the entire debt
market.
DEBT OBLIGATIONS RATED BY CRISIL INCLUDE
FUNCTIONS OF CRISIL
CRISIL LONG TERM RATING SCALE
CRISIL SHORT TERM RATING SCALE
ICRA was set up by IFCI on 16th january 1991.
A public limited company.
An authorized share capital of rs.10crores, rs. 5 crores is paid up.
To provide information & guidance to investors.
ICRA’S major shareholders IFCI (26%).
Determines the credit risk associated with a debt instrument.
ICRA : INVESTMENT INFORMATION & CREDIT RATING AGENCY OF INDIA LIMITED.
ICRA LONG TERM RATING SCALE
ICRA SHORT TERM RATING SCALE