A CRISIL rating reflects CRISIL's current opinion on the relative likelihood of timely payment of interest and principal on the rated obligation. It is an unbiased, objective, and independent opinion as to the issuer's capacity to meet its financial obligations.
So far, CRISIL has rated 30,000 debt instruments, covering the entire debt market.
The debt obligations rated by CRISIL include:
- Non-convertible debentures/bonds/preference shares
- Commercial papers/certificates of deposits/short-term debt
- Fixed deposits
- Structured debt
CRISIL Ratings' clientele includes all the industry majors - 23 of the BSE Sensex constituent companies and 39 of the NSE Nifty constituent companies, accounting for 80 per cent of the equity market capitalisation.
CRISIL's credit ratings are
- An opinion on probability of default on the rated obligation
- Forward looking
- Specific to the obligation being rated
But they are not
- A comment on the issuer's general performance
- An indication of the potential price of the issuers' bonds or equity shares
- Indicative of the suitability of the issue to the investor
- A recommendation to buy/sell/hold a particular security
- A statutory or non-statutory audit of the issuer
- An opinion on the associates, affiliates, or group companies, or the promoters, directors, or officers of the issuer
CRISIL ratings are based on a robust and clearly articulated analytical framework, which ensures comprehensiveness, standardisation, comparability, and effective communication of the ratings assigned and of every timely rating action. The assessment is based on the highest standards of independence and analytical rigour.
CRISIL rates a wide range of entities, including:
- Industrial companies
- Non-banking financial companies (NBFCs)
- Infrastructure entities
- Microfinance institutions
- Insurance companies
- Mutual funds
- State governments
- Urban local bodies