Debt Rating

Corporate Sector

CARE Ratings’ credit ratings are its opinion on the relative ability and willingness of the issuer to meet the debt service obligations as and when they arise. Rating determination is a matter of experienced and holistic judgement, based on the relevant quantitative and qualitative factors affecting the credit quality of the issuer. CARE Ratings has based its ratings/outlooks on information obtained from sources believed by it to be accurate and reliable. Within the corporate sector, CARE Ratings rates debt instruments and bank facilities of manufacturing entities, service entities, trading entities, PSUs etc.

CARE Ratings’ credit analysis of an entity begins with the review of the Economy, followed by the Industry in which the entity operates along with an assessment of the business risk factors specific to the entity. This is followed by an assessment of the financial risk factors and quality of management of the entity. For project stage entities/ entities undertaking large projects, CARE Ratings also analyses project risk for arriving at the entity’s rating. Over-and-above this, CARE Ratings has defined several sector-specific methodologies to capture nuances of the respective sectors, which are also factored in the entity’s credit assessment.

CARE Ratings’ offerings for the corporate sector include:
  • Bank Loan ratings
  • Debt Instrument ratings
  • Long-term instruments like
  • Bonds
  • Non-Convertible Debentures (NCDs)
  • Preference Shares
  • Medium-term instruments like
  • Fixed Deposits (FDs)
  • Short-term instruments like
  • Commercial Papers (CPs)
  • Short-term NCDs