FREQUENCY OF RATING ACTIONS

• The rating assigned is communicated to the client along with a detailed rationale.
• The ratings accepted by the clients are published and then monitored on a continuous basis over the life of the instrument.
• CARE has a comprehensive in-house data base which facilitates surveillance of the various industries and companies operating in these industries.
• Each rating is reviewed formally at least once a year, when analysts meet the issuer's management.
• A review can also be triggered by a major development in the company or in the industry, which may have a significant bearing on the credit-worthiness of the company.
• As a part of the review exercise, actual financial performance is analysed in the light of the estimates made earlier and deviations are examined.
• CARE puts the rating under Credit Watch, when any event or deviation from the expected trend has occurred or is expected and additional information is necessary to take rating action.
• The rating may be retained, upgraded or downgraded based on the changed prospects for the issuer. A rating change is at the absolute discretion of CARE, without concurrence of the client.