Financial Sector Debt Ratings cover entities like Banks and Financial Institutions, Non Banking Finance Companies (NBFCs) and Housing Finance Companies (HFCs). While all of these entities perform the function of borrowing and lending, there are significant differences between them in terms of scale, products and services, regulatory requirements etc. Borrowings by these entities may be in the form of public deposits, term loans, debentures, tier II capital, working capital demand loan, cash credit from banks, etc. CARE’s ratings factor in the array of risks that have an effect on the company viz business risks, legal risk, financial risks and management risks.