Rating symbol and definitions for long term debt instrument

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

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