CARE undertakes rating exercise based on information provided by the company, in-house
database and data from other sources that CARE considers reliable.
+ Debt Ratings
+ Bank Loan
+ Issuer Ratings +
Corporate Governance Rating
+ Recovery Rating
Financial Sector Ratings
CARE’s ratings factor in the array of risks that have an effect on the Financial
Sector company viz business risks, legal risk, financial risks and management risks.
+ Credit Quality Rating
+ Capital Protection Oriented Scheme Ratings
+ Insurance + NBFCs
+ Housing Finance
Public Finance Ratings
CARE has comprehensive framework for the assessment of the credit quality of states
and local bodies.
+ Urban Local Bodies
CARE’s Project Finance Ratingis an independent opinion on the risks associated with
the project on a standalone basis and after considering the sponsor’s strength.
+ Project Finance
Infrastructure Sector Ratings
CARE’s Infrastructure Sector Rating encompasses the ratings assigned to debt programmes
of issuers in the power, roads, telecommunications and other such infrastructure-related
CARE's Valuation of PPMLD structures are opinions on the valuation of a given instrument based on CARE's analysis of the structure and the impact of underlying market variables affecting the structure on the given valuation date.
CARE’s SME Vertical
Value-added services for SMEs
+ Wide product offerings
+ Database of more than 6,000 SME entities
+ Quarterly publications for analytical inputs
+ Daily publication on news in SME sector
+ Operating from ten branches across India
+ MoU with leading banks for interest & rating fee concession
+ A team of qualified analyst
+ Click here to view Services in MSME Segment
Indian SMEs face growth constraints due to lack of adequate& timely finance and difficulty to establish credible relations with its stakeholders.
CARE’s SME vertical with its sound data base and analytical abilities offers the various products in this segment to bridge this gap.
+ NSIC-CARE Performance & Credit
Rating for MSEs + SME Ratings
+ SME Fundamental Grading
+ Bank Loan Ratings
+ Due Diligence Service
+ Channel Partner
EQUIGRADE is a flagship product under equity research and grading services offered
+ Read More
Real Estate Star Rating
CARE undertakes the Real Estate Star Rating exercise by implementing its plethora
of analytical expertise.
CARE EDU GRADE is a grading product for Educational Institutes.
CARE’s IPO grading is a service aimed at facilitating the assessment of equity issues
offered to public.
ITI Grading is a grading product for Industrial Training Institutes.
+ Read More
CARE's MFI grading is a one-time assessment of a Micro Finance Institution's (MFI)
operational and financial capability…
CARE’s Rating of REIT fund is an opinion on the REIT’s investment quality, based on the fundamental assessment of the REIT.…
CARE has been empanelled by MNRE for carrying out the Accreditation/Grading exercise
for Renewable Energy Service Companies (RESCOs)…
The ESCOs specializes in energy audits and implement energy efficiency practices
in a particular organization…
+ Shipyard Grading
+ Construction Grading
+ Maritime Grading
Rating Symbols & Definition
+ Bank Loan Ratings
+ Corporate Governance Rating
+ Construction Grading
+ Corporate Governance Rating
Rating/Statistics – Regulatory Disclosure
+ Credit Rating History and Default
+ Structured Finance Product
+ Outstanding Rating
+ Brief Rationale
+ Complexity Level of Rated Instruments
+ FAQs on
+ Fee Structure
The Economics Department is known for its regular and almost real-time domestic
and global economy-related updates, opinions as well as analytical Studies and Surveys.
Analyses of developments in areas such as GDP, industrial growth, inflation, agricultural
growth, trade etc.
The reports in this section assess the impact of various policy measures by different
countries on India’s economy and so on.
Surveys that capture expectations of the key players in the industry; from various
fields like banking, automobile, entertainment, etc., on various economic developments.
In-depth analytical Studies to ascertain trends in various facets of the economy.
Debt Market Update
A free monthly bulletin about the happenings in the debt market.
+ Audited Financial Results
+ Unaudited Financial Results
+ Annual Reports
+ BSE Stock Watch + NSE Market Tracker
+ Registrar and Share Transfer
The rating process takes about two to three weeks, depending on the complexity of
the assignment and the flow of information from the client. Ratings are assigned
by the Rating Committee.
CARE undertakes a rating exercise based on information provided by the company,
in-house databases and data from other sources that CARE considers reliable. CARE
does not undertake unsolicited ratings.
Rating fees are computed separately on each instrument issued. Issuers are liable
to pay rating fees, regardless of whether they accept CARE's rating or not. Full
rating fee is to be paid up front.
Why CARE Ratings? Why is credit rating necessary at all? Why do rating agencies
use symbols like AAA, AA, rather than give marks or descriptive credit opinion?
+ View More
Developments in the financial markets have focused attention on the need to have proper understanding of the terms of financial instruments,
before selecting them for investment. Even sophisticated investors, in both domestic as well as international markets, may be wary about investing
in an instrument without fully comprehending the risks involved. Rapid developments in financial markets aided by technology, requires an investor to
have proper understanding of features of instruments, especially the more sophisticated ones, before investing in them. To aid this process, CARE has,
as an investor education measure, introduced classification of instruments based on complexity. It is expected that this would enable the investor to
take a well-informed decision about investment in a financial instrument. This classification is expected to help the market intermediaries to target investors
depending on the levels of acceptable complexity. Further, Government/Regulators would find this classification useful in
prescribing the levels of complexity for investment by certain class of investors such as provident funds, trusts, insurance companies etc.
Instruments have been classified into the three categories- simple, complex and highly complex - based on four criteria:
Certainty Of Rate Of Return
In case of traditional fixed deposits and non-convertible debentures with fixed coupon payment, there is no uncertainty
regarding the rate of interest on due dates unlike some other instruments which may be linked to a benchmark – say MIBOR.
While plain vanilla non-convertible debentures and bonds may not have the put/call option that exposes an investor to reinvestment
risk, Deep Discount Bonds generally have multiple put/call options. Investors in such instruments need to be sensitized that their
intention to lock in at a preferred rate of interest for the maturity period of the instrument may not fructify if the issuer exercises
the call option.
Number of Parties Involved In The Transaction
In case of instruments carrying a guarantee, the investor needs to understand that the credit risk of these instruments is dependent on the
creditworthiness of the guarantor apart from the issuer itself. Instruments with partial guarantee are also in vogue, and are more complex in
Familiarity Of Capital Market With The Instrument
While traditional fixed deposits, non-convertible debentures, bonds etc have been popular with investors for decades, Instruments issued
by banks for augmenting their capital like perpetual bonds, require an understanding of the regulatory framework and the performance of
the issuing bank. All investor classes are also not well acquainted with the intricacies of instruments issued in case of securitization
transactions. As the market becomes more sophisticated and market participants become familiar with some instruments, classification based
on this criterion may require a revision.
Classification of instruments based on the above criteria is given below
Instruments included in this level are the least complex instruments. These are generally, instruments with a fixed rate of return with a pre-determined repayment period. They do not have any prepayment risk and there is only one counterparty. Capital market participants are very familiar with the instrument.
Instruments included in this level are moderately complex instruments. These are generally, instruments with a variable rate of return. While the repayment period may be fixed, there is a risk of prepayment and number of counterparties may be more than one. Capital market participants may be only moderately familiar with the instrument.
Instruments included in this level are most complex instruments. They generally have a variable return and maturity profile. Number of counterparties involved may be more than one. Capital market participants are not very familiar with the instrument.
Complexity vs Credit Risk
Classification of instruments based on complexity should not be misconstrued as an indicator of inherent credit risk of the instrument. Even instruments classified as Simple may have a higher credit risk compared to those classified as Complex or Highly Complex. For example, while Fixed Deposits, which are unsecured in nature, are simple instruments to transact, the credit risk may be higher (in case of a weaker entity issuing the deposit) than that of Highly Complex instrument like Asset Backed Securities.
It is expected that the above classification would be useful to investors and market intermediaries. The investors would find the classification useful to understand the degree of due diligence required before selecting an instrument. Market intermediaries would find it useful in targeting different classes of investors with instruments of acceptable levels of complexity. Further, it is also expected that the Government/regulators would find the classification useful while stipulating investment criteria for certain classes of investors like provident funds, trusts, insurance companies etc. For classification of instruments based on the criteria mentioned above please refer to annexure.
This service is being made on a voluntary basis, free of cost as an investor education measure.
Investors are also free to contact at email@example.com to obtain classification of instruments based on complexity.
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