|
A bank loan rating indicates the degree of risk regarding timely payment of the bank facility being rated; the facility includes principal and interest, if any, on the principal.
CRISIL commenced rating bank loans post the Reserve Bank of India's guidelines on capital adequacy for banks, in 2007. The Basel II guidelines, as they are called, require banks to provide capital on the credit exposure as per credit ratings assigned by approved external credit assessment institutions (ECAIs), such as CRISIL. Basel II is a recommendatory framework for banking supervision, issued by the Basel Committee on Banking Supervision in June 2004. The objective of Basel II is to bring about international convergence of capital measurement and standards in the banking system. The revised framework for capital adequacy has been effective from March 31, 2008, for all Indian banks with an operational presence outside India (12 public sector banks and five private sector banks) and for all foreign banks operating in India. It has been applicable to all other commercial banks (except local area banks and regional rural banks) from March 31, 2009.
CRISIL rates the maximum number of companies for their bank loans in India. It has, so far, assigned ratings to the bank facilities of more than 9,156 entities as on March 31, 2012, representing over 50 per cent of all the companies which have their bank loans rated in India; CRISIL has rated bank facilities of all types: term loans, project loans, corporate loans, general purpose loans, working capital demand loans, cash credit facilities, and non-fund-based facilities, such as letters of credit and bank guarantees.
CRISIL bank loan ratings cover companies of all sizes with bank facilities ranging from Rs.50 million to Rs.500 billion. The break-up of ratings according to size of bank facilities is given below
CRISIL's bank loan coverage is pan-Indian, as can be seen below:
Some of the highlights of CRISIL's bank loan rating operations, underlining its superior capabilities as a rating agency of choice, are as follows:
- A direct presence in 65 major industrial centres across India to handhold first-time rating clients
- The largest and most experienced team of rating analysts
- A qualified team of industry analysts and economists that contributes to a large knowledge base
- State-of-the-art automated workflow with dedicated support-services teams
- Regular presentations and interaction with industry associations, regulators, and decision makers
|