SEBI observed that the credit rating agencies registered with it use different rating symbol and definitions.so there was a need to be common rating symbols and definitions
- for easy understanding of the rating symbols and their meanings by the investors
- and to achieve high standards of integrity and fariness in ratings
Long term debt instruments
These instruments are with original maturity exeeding one year
- AAA -instrument with this rating are considered to have the highest degree of safety regarding timely servecing of financial obligation. such instrument carry lowest credit risk
- AA- instrument with this rating are considered to have the high degree of safety regarding timely servecing of financial obligation. such instrument carry low Credit risk
- A- Instrument with this rating are considered to have adequate degree of safety regarding timely servecing of financial obligation. such instrument carry low Credit risk
- BBB- Instrument with this rating are considered to have moderate degree of safety regarding timely servecing of financial obligation.such instruments carry moderate credit risk
- BB-Instrument with this rating are considered to have moderate risk of default regarding timely servecing of financial obligation.
- B-Instrument with this rating are considered to have high risk of default regarding timely servecing of financial obligation.
- C-Instrument with this rating are considered to have very high risk of default regarding timely servecing of financial obligation.
- D-Instruments with this rating are in default or expected to be in default soon
Modifires (“+/”-“) can be used with the rating symbols for the categories AA to C. The modefirers reflect the comparative standing within the category