8/2/2019 A CRISIL Rating Reflects CRISIL
http://slidepdf.com/reader/full/a-crisil-rating-reflects-crisil 1/14
ASSIGNMENT ON
“CREDIT RATING AGENCY:CRISIL
AND ITS RATINGS OF 30 COMPANIES”
NAME: PRIYA H. UTTANI
ROLL NO.: 8
CLASS: MBA SEM 4(GIA)
SUBJECT: SECURITY ANALYSIS ANDPORTFOLIO MANAGEMENT
BATCH: 2010-2012
GUIDE: Dr. B.C.AJMERA
SUBMITTED TO: DEPT. OF BUSINESSADMINISTRATION
8/2/2019 A CRISIL Rating Reflects CRISIL
http://slidepdf.com/reader/full/a-crisil-rating-reflects-crisil 2/14
INTRODUCTION
A CRISIL rating reflects CRISIL's current opinion on the relative likelihood of timely payment of
interest and principal on the rated obligation. It is an unbiased, objective, and independent opinionas to the issuer's capacity to meet its financial obligations.
So far, CRISIL has rated 30,000 debt instruments, covering the entire debt market.
The debt obligations rated by CRISIL include:
Non-convertible debentures/bonds/preference shares
Commercial papers/certificates of deposits/short-term debt Fixed deposits
Loans
Structured debt
CRISIL Ratings' clientele includes all the industry majors - 23 of the BSE Sensex constituentcompanies and 39 of the NSE Nifty constituent companies, accounting for 80 per cent of the equity
market capitalisation, are CRISIL's clients.
CRISIL's credit ratings are
An opinion on probability of default on the rated obligation Forward looking
Specific to the obligation being rated
But they are not
A comment on the issuer's general performance
An indication of the potential price of the issuers' bonds or equity shares Indicative of the suitability of the issue to the investor
A recommendation to buy/sell/hold a particular security
A statutory or non-statutory audit of the issuer An opinion on the associates, affiliates, or group companies, or the promoters, directors, or
officers of the issuer
CRISIL ratings are based on a robust and clearly articulated analytical framework, which ensures
comprehensiveness, standardisation, comparability, and effective communication of the ratingsassigned and of every timely rating action. The assessment is based on the highest standards of
independence and analytical rigour.
8/2/2019 A CRISIL Rating Reflects CRISIL
http://slidepdf.com/reader/full/a-crisil-rating-reflects-crisil 3/14
CRISIL rates a wide range of entities, including:
Industrial companies
Banks Non-banking financial companies (NBFCs)
Infrastructure entities Microfinance institutions
Insurance companies Mutual funds
State governments
Urban local bodies
CRISIL uses simple alphanumeric symbols to convey credit ratings. CRISIL assigns credit ratings
to debt obligations on three basic scales: the long-term scale, the short-term scale, and the fixed
deposit scale. To illustrate, CRISIL's long-term credit rating scale and the description associatedwith each category on the rating scale is given below:
Symbol
(Rating
category).
Description (with regard to the likelihood of meeting the
debt obligations on time)
AAA Highest Safety
AA High Safety
A Adequate Safety
BBB Moderate Safety
BB Inadequate Safety
B High Risk
C Substantial Risk
D Default
CRISIL's Core Businesses
Ratings
Global Research & Analytics: (Irevna, Pipal Research)
Research
8/2/2019 A CRISIL Rating Reflects CRISIL
http://slidepdf.com/reader/full/a-crisil-rating-reflects-crisil 4/14
Capital Markets
Infrastructure Advisory
CRISIL Risk Solutions
CRISIL Rating Process
CRISIL's ratings process is designed to ensure that all ratings are based on the highest
standards of independence and analytical rigour.
From the initial meeting with the management to the assignment of the rating, the rating
process normally takes three to four weeks. However, CRISIL has sometimes arrived atrating decisions in shorter timeframes, to meet urgent requirements. The process of rating
starts with a rating request from the issuer, and the signing of a rating agreement. CRISILemploys a multi-layered, decision-making process in assigning a rating.
8/2/2019 A CRISIL Rating Reflects CRISIL
http://slidepdf.com/reader/full/a-crisil-rating-reflects-crisil 5/14
A detailed flow chart of CRISIL's rating process is as below:
8/2/2019 A CRISIL Rating Reflects CRISIL
http://slidepdf.com/reader/full/a-crisil-rating-reflects-crisil 6/14
Corporate Credit Rating Scale:
CCR AAA
("CCR Triple A")
A 'CCR AAA' rating indicates Highest degree of strength with regard
to honoring debt obligations.
CCR AA
("CCR Double A")
A 'CCR AA' rating indicates High degree of strength with regard to
honoring debt obligations.
CCR AA 'CCR A' rating indicates Adequate degree of strength with regard
to honoring debt obligations.
CCR BBBA 'CCR BBB' rating indicates Moderate degree of strength with
regard to honoring debt obligations.
CCR BBA 'CCR BB' rating indicates Inadequate degree of strength withregard to honoring debt obligations.
CCR BA 'CCR B' rating indicates High Risk and greater susceptibility with
regard to honoring debt obligations.
CCR CA 'CCR C' rating indicates Substantial Risk with regard to honoring
debt obligations.
CCR DA 'CCR D' rating indicates that the entity is in Default of some or allof its debt obligations.
CCR SD
A 'CCR SD' rating indicates that the entity has Selectively Defaulted
on a specific issue or class of debt obligations, but will continue to
meet its payment obligations on other issues or classes of debt
obligations.
Note:
CRISIL may apply '+' (plus) or '-' (minus) modifiers for ratings from
'CCR AA' to 'CCR C' to reflect comparative standing within thecategory.
8/2/2019 A CRISIL Rating Reflects CRISIL
http://slidepdf.com/reader/full/a-crisil-rating-reflects-crisil 7/14
Allahabad Bank
Rating Outstanding as on 24-Jan-2012
Industry : Banks
Instrument Category Rating Rating
Outlook
Instrument
Details
Long Term CRISIL AA+ Stable view
Short Term CRISIL A1+ view
Raymond Apparel Limited
Rating Outstanding as on 24-Jan-2012
Industry : Specialty Retail
Instrument Category Rating Rating
Outlook
Instrument
Details
Long Term CRISIL A+ Stable
Reliable Autotech Pvt. Ltd.
Rating Outstanding as on 24-Jan-2012Industry : Auto Components
Instrument Category Rating Rating
Outlook
Instrument
Details
Long Term CRISIL B Stable view
Short Term CRISIL A4 view
Reliance Capital LtdRating Outstanding as on 24-Jan-2012
Industry : Non Banking Financial Company
Instrument Category Rating RatingOutlook
InstrumentDetails
Short Term CRISIL A1+ view
8/2/2019 A CRISIL Rating Reflects CRISIL
http://slidepdf.com/reader/full/a-crisil-rating-reflects-crisil 8/14
Structured Obligation CRISILAAA(SO)
view
Ranbaxy Laboratories Ltd
Rating Outstanding as on 24-Jan-2012Industry : Pharmaceuticals
Instrument Category Rating RatingOutlook
InstrumentDetails
Short Term CRISIL A1+
Reliance Fabrications Private Limited
Rating Outstanding as on 24-Jan-2012
Industry : Machinery
Instrument Category Rating RatingOutlook InstrumentDetails
Long Term CRISIL B+ Stable view
Short Term CRISIL A4 view
KANSAI NEROLAC PAINTS LIMITED
Rs.600 Million Cash Credit CRISIL AAA/Stable (Reaffirmed)
Rs.100 Million Non-Convertible Debenture Issue CRISIL AAA/Stable (Reaffirmed)
Rs.300 Million Commercial Paper Programme CRISIL A1+ (Reaffirmed)
ABC Paper Limited
Rating Outstanding as on 24-Jan-2012
Industry : Paper & Forest Products
Instrument Category Rating Rating
Outlook
Instrument
Details
Long Term CRISIL BBB- Negative view
Short Term CRISIL A3 view
Rating Rationales
8/2/2019 A CRISIL Rating Reflects CRISIL
http://slidepdf.com/reader/full/a-crisil-rating-reflects-crisil 9/14
Adani Power Limited
Rating Outstanding as on 24-Jan-2012
Industry : Independent Power Producers & Energy Traders
Instrument Category Rating RatingOutlook
InstrumentDetails
Long Term CRISIL A- Stable view
Ashok Leyland Ltd.
Rating Outstanding as on 24-Jan-2012
Industry : Automobiles
Instrument Category Rating Rating
Outlook
Instrument
Details
Long Term CRISIL AA- Stable view
Short Term CRISIL A1+ view
V Mart Retail Limited
Rating Outstanding as on 24-Jan-2012
Industry : Specialty Retail
Instrument Category Rating Rating
Outlook
Instrument
Details
Long Term CRISIL BBB Stable view
Short Term CRISIL A3+
Reliance Infrastructure Limited
Rating Outstanding as on 25-Jan-2012
Industry : Electric Utilities
Instrument Category Rating RatingOutlook
InstrumentDetails
Long Term CRISIL AA+ Negative view
Short Term CRISIL A1+
8/2/2019 A CRISIL Rating Reflects CRISIL
http://slidepdf.com/reader/full/a-crisil-rating-reflects-crisil 10/14
Reliance Jute Mills (International) Limited
Rating Outstanding as on 25-Jan-2012
Industry : Textiles- Apparel & Luxury Goods
Instrument Category Rating RatingOutlook
InstrumentDetails
Long Term CRISIL BB Stable view
Short Term CRISIL A4+ view
Reliance Industries Limited
Rating Outstanding as on 25-Jan-2012
Industry : Oil Gas & Consumable Fuels
Instrument Category Rating Rating
Outlook
Instrument
DetailsLong Term CRISIL AAA Stable view
Short Term CRISIL A1+
Reliance Ports And Terminals Limited
Rating Outstanding as on 25-Jan-2012
Industry : Transportation Infrastructure
Instrument Category Rating Rating
Outlook
Instrument
Details
Long Term CRISIL AAA Stable view
CRISIL AAA view
Short Term CRISIL A1+
Remsons Industries Ltd.
Rating Outstanding as on 25-Jan-2012
Industry : Auto Components
Instrument Category Rating RatingOutlook
InstrumentDetails
Long Term CRISIL BB ^ Stable view
Short Term CRISIL A4+ ^
8/2/2019 A CRISIL Rating Reflects CRISIL
http://slidepdf.com/reader/full/a-crisil-rating-reflects-crisil 11/14
Reliance Ports And Terminals Limited
Rating Outstanding as on 25-Jan-2012
Industry : Transportation Infrastructure
Instrument Category Rating RatingOutlook
InstrumentDetails
Long Term CRISIL AAA Stable view
CRISIL AAA view
Short Term CRISIL A1+
Reliance Utilities and Power Private Limited
Rating Outstanding as on 25-Jan-2012
Industry : Independent Power Producers & Energy Traders
Instrument Category Rating RatingOutlook
InstrumentDetails
Long Term CRISIL AAA Stable view
Religare Securities Limited
Rating Outstanding as on 25-Jan-2012
Industry : Broking Company
Instrument Category Rating RatingOutlook
InstrumentDetails
Short Term CRISIL A1+
HDFC Bank Ltd.
Rating Outstanding as on 25-Jan-2012
Industry : Banks
Instrument Category Rating Rating
Outlook
Instrument
Details
Long Term CRISIL AAA Stable view
Structured Obligation CRISIL
AAA(SO)
view
CRISIL
AAA(SO) prov.
view
8/2/2019 A CRISIL Rating Reflects CRISIL
http://slidepdf.com/reader/full/a-crisil-rating-reflects-crisil 12/14
Governance and ValueCreation Rating
CRISIL GVCLevel 1
HDFC Securities LimitedRating Outstanding as on 25-Jan-2012
Industry : Broking Company
Instrument Category Rating RatingOutlook
InstrumentDetails
Long Term CRISIL AAA Stable view
Short Term CRISIL A1+
ICICI Bank LimitedRating Outstanding as on 25-Jan-2012
Industry : Banks
Instrument Category Rating Rating
Outlook
Instrument
Details
Long Term CRISIL AAA view
CRISIL AAA Stable view
Structured Obligation CRISIL
AAA(SO) prov.
view
CRISILAAA(SO)
Stable view
CRISIL
AAA(SO)
view
CRISIL AA+
(SO)
view
CRISIL AA(SO) view
CRISIL BBB+
(SO)
view
CRISIL
BBB(SO) prov.
view
CRISIL D(SO) view
CRISIL A1+
(SO) prov.
view
8/2/2019 A CRISIL Rating Reflects CRISIL
http://slidepdf.com/reader/full/a-crisil-rating-reflects-crisil 13/14
CRISIL A1+(SO)
view
ICICI Securities LimitedRating Outstanding as on 25-Jan-2012
Industry : Broking Company
Instrument Category Rating RatingOutlook
InstrumentDetails
Long Term CRISIL AAA Stable view
Short Term CRISIL A1+ view
IDBI Bank Limited
Rating Outstanding as on 25-Jan-2012
Industry : Banks
Instrument Category Rating Rating
Outlook
Instrument
Details
Long Term CRISIL AA+ Stable view
CRISIL AA Stable view
Fixed Deposit FAAA Stable view
Short Term CRISIL A1+ view
Structured Obligation CRISIL A1+(SO)
view
ING Vysya Bank Limited
Rating Outstanding as on 25-Jan-2012
Industry : Banks
Instrument Category Rating Rating
Outlook
Instrument
Details
Long Term CRISIL AA Stable view
Fixed Deposit FAAA ^ Stable view
Short Term CRISIL A1+
Tata Capital Housing Finance Limited
Rating Outstanding as on 25-Jan-2012
Industry : Housing Finance Company
Instrument Category Rating Rating Instrument
8/2/2019 A CRISIL Rating Reflects CRISIL
http://slidepdf.com/reader/full/a-crisil-rating-reflects-crisil 14/14
Outlook Details
Long Term CRISIL AA+ Stable view
Short Term CRISIL A1+
Tata Motors Limited
Rating Outstanding as on 25-Jan-2012
Industry : Automobiles
Instrument Category Rating Rating
Outlook
Instrument
Details
Long Term CRISIL AA- Stable view