» Rating Process
» Management Interaction
» Rating committee and assignment of the rating
» Communicating the rating to the issuer
» Publication
» Surveillance
» Confidentiality
» Limitations of CRISIL's Credit Ratings

After meeting the issuer's management, CRISIL's analysts prepare a report detailing their assessment of the business risk, financial risk, and management risk associated with the issuer. The report is then presented to the rating committee at a rating committee meeting (RCM). This is the only aspect of the process in which the issuer does not directly participate. The rating committee comprises experts who bring with them extensive experience in numerous companies and industrial and financial sectors. Drawing on the knowledge and expertise of the participants, the rating committee determines the rating.

The RCM process ensures the objectivity of the rating, since the decision results from the collective thinking of a group of experts analysing the risks pertaining to the issuer and its competitors, and the industry and markets in which they operate. The RCM process also ensures a high level of analytical quality since the reports and discussions are focused on critical rating factors that are relevant to the issuer

The rating process attempts to identify the key issues concerning the company. The rating is a composite assessment of all these factors, with the key issues getting greater attention from the Rating Committee. CRISIL offers an opportunity to the companies to be evaluated on a confidential basis. The rating process ensures complete confidentiality of information that is provided by the company.

For a rating to have value to an issuer or to an investor, the rating agency must have credibility. The thoroughness and transparency of CRISIL's rating methodology and the integrity and fairness of its approach are important factors in establishing and maintaining credibility. Therefore, a rating agency should be, always willing to discuss with the management factors that the company feels may not have been considered and also share with the company management the broad reasons for the rating it has assigned.