Credit Rating

1. Credit Rating Dr Saif Siddiqui Centre for Management Studies Jamia Millia Islamia (A Central University) New Delhi- 110025

26. CRISIL Rating Symbols For Long Term Ratings : Investment Grade Ratings AAA (Triple A) Highest Safety Instruments rated 'AAA' are judged to offer the highest degree of safety with regard to timely payment of financial obligations. Any adverse changes in circumstances are most unlikely to affect the payments on the instrument AA (Double A) High Safety Instruments rated 'AA' are judged to offer a high degree of safety with regard to timely payment of financial obligations. They differ only marginally in safety from `AAA' issues. A Adequate Safety Instruments rated 'A' are judged to offer an adequate degree of safety with regard to timely payment of financial obligations. However, changes in circumstances can adversely affect such issues more than those in the higher rating categories. BBB (Triple B) Moderate Safety Instruments rated 'BBB' are judged to offer a moderate safety with regard to timely payment of financial obligations for the present; however, changing circumstances are more likely to lead to a weakened capacity to pay interest and repay principal than for instruments in higher rating categories.

27. CRISIL Rating Symbols For Long Term Ratings : Speculative Grade Ratings BB (Double B) Inadequate Safety Instruments rated 'BB' are judged to carry inadequate safety with regard to timely payment of financial obligations; they are less likely to default in the immediate future than other speculative grade instruments, but an adverse change in circumstances could lead to inadequate capacity to make payment on financial obligations. B High Risk Instruments rated 'B' are judged to have greater likelihood of default; while currently financial obligations are met, adverse business or economic conditions would lead to lack of ability or willingness to pay interest or principal. C Substantial Risk Instruments rated 'C' are judged to have factors present that make them vulnerable to default; timely payment of financial obligations is possible only if favourable circumstances continue. D Default Instruments rated 'D' are in default or are expected to default on scheduled payment dates. Such instruments are extremely speculative and returns from these instruments may be realized only on reorganisation or liquidation. NM Not Meaningful Instruments rated 'N.M' have factors present in them, which render the rating outstanding meaningless. These include reorganisation or liquidation of the issuer, the obligation is under dispute in a court of law or before a statutory authority etc.

28. CRISIL Rating Symbols For Short Term Instruments P-1 This rating indicates that the degree of safety regarding timely payment on the instrument is very strong. P-2 This rating indicates that the degree of safety regarding timely payment on the instrument is strong; however, the relative degree of safety is lower than that for instruments rated 'P-1'. P-3 This rating indicates that the degree of safety regarding timely payment on the instrument is adequate; however, the instrument is more vulnerable to the adverse effects of changing circumstances than an instrument rated in the two higher categories. P-4 This rating indicates that the degree of safety regarding timely payment on the instrument is minimal and it is likely to be adversely affected by short-term adversity or less favourable conditions. P-5 This rating indicates that the instrument is expected to be in default on maturity or is in default . NM Not Meaningful Instruments rated 'N.M' have factors present in them, which render the rating outstanding meaningless. These include reorganisation or liquidation of the issuer, the obligation is under dispute in a court of law or before a statutory authority etc.

29. Corporate Credit Rating Scale CCR AAA ("CCR Triple A") A 'CCR AAA' rating indicates highest degree of strength with regard to honouring debt obligations. CCR AA ("CCR Double A") A 'CCR AA' rating indicates high degree of strength with regard to honouring debt obligations. CCR A A 'CCR A' rating indicates adequate degree of strength with regard to honouring debt obligations. CCR BBB A 'CCR BBB' rating indicates moderate degree of strength with regard to honouring debt obligations. CCR BB A 'CCR BB' rating indicates inadequate degree of strength with regard to honouring debt obligations. CCR B A 'CCR B' rating indicates high risk and greater susceptibility with regard to honouring debt obligations. CCR C A 'CCR C' rating indicates substantial risk with regard to honouring debt obligations. CCR D A 'CCR D' rating indicates that the entity is in default of some or all of 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 the category.

30. CRISIL Rating Symbols For Real Estate Projects PA1 Highest Ability The rating indicates that the developer's ability to build the project as per the specified quality level and time schedule and to transfer a clear title is the highest. PA2 High Ability The rating indicates that the developer's ability to build the project as per the specified quality level and time schedule and to transfer a clear title is high. Project risks are marginally higher in this category than in compared to projects in the 'PA1' category. PA3 Adequate Ability The rating indicates that the developer's ability to build the project as per the specified quality level and time schedule and to transfer a clear title is adequate. Changing circumstances are likely to adversely affect these projects more than those in the higher rating categories. PA4 Inadequate Ability The rating indicates that the developer's ability to build the project as per the specified quality level and time schedule is inadequate. Uncertainties facing the project could result in the developer's inability or unwillingness to complete the project. PA5 Inability This rating indicates inability of the developer to complete projects or transfer clear title. Note: CRISIL may apply "+" (plus) sign for ratings from 'PA 1' to 'PA 3' to reflect comparative standing within the category.

31. CRISIL Rating Symbols For Real Estate Developers DA1 Excellent The developer's track record in executing real estate projects as per specified quality levels within the stipulated time schedule, and ability to transfer clean title, are excellent. DA2 Very Good The developer's track record in executing real estate projects as per specified quality levels within the stipulated time schedule, and ability to transfer clean title, are very good. DA3 Good The developer's track record in executing real estate projects as per specified quality levels within the stipulated time schedule, and ability to transfer clean title, are good. DA4 Unsatisfactory The developer's track record in executing real estate projects as per specified quality levels within the stipulated time schedule, and ability to transfer clean title, are unsatisfactory. DA5 Poor The developer's track record in executing real estate projects as per specified quality levels within the stipulated time schedule, and ability to transfer clean title, are poor. Note: CRISIL may apply "+" (plus) sign for ratings from 'DA1' to 'DA3' to reflect comparative standing within the category.

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