| CRISIL Rating Symbols For Long Term Ratings |
AAA
(Triple A) Highest Safety
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Instruments rated 'AAA' are judged to offer the highest degree of safety with regard to timely payment of financial obligations. Any adverse changes in circumstances are most unlikely to affect the payments on the instrument |
AA
(Double A) High Safety
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Instruments rated 'AA' are judged to offer a high degree of safety with regard to timely payment of financial obligations. They differ only marginally in safety from `AAA' issues. |
A
Adequate Safety |
Instruments rated 'A' are judged to offer an adequate degree of safety with regard to timely payment of financial obligations. However, changes in circumstances can adversely affect such issues more than those in the higher rating categories.
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BBB
(Triple B) Moderate Safety |
Instruments rated 'BBB' are judged to offer moderate safety with regard to timely payment of financial obligations for the present; however, changing circumstances are more likely to lead to a weakened capacity to pay interest and repay principal than for instruments in higher rating categories. |
BB
(Double B) Inadequate Safety |
Instruments rated 'BB' are judged to carry inadequate safety with regard to timely payment of financial obligations; they are less likely to default in the immediate future than instruments in lower rating categories, but an adverse change in circumstances could lead to inadequate capacity to make payment on financial obligations.
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B
High Risk |
Instruments rated 'B' are judged to have high likelihood of default; while currently financial obligations are met, adverse business or economic conditions would lead to lack of ability or willingness to pay interest or principal. |
C
Substantial Risk |
Instruments rated 'C' are judged to have factors present that make them vulnerable to default; timely payment of financial obligations is possible only if favourable circumstances continue.
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D
Default |
Instruments rated 'D' are in default or are expected to default on scheduled payment dates.
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NM
Not Meaningful |
Instruments rated 'NM' have factors present in them, which render the outstanding rating meaningless. These include reorganisation or liquidation of the issuer, the obligation being under dispute in a court of law or before a statutory authority etc.
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1) CRISIL may apply '+' (plus) or '-' (minus) signs for ratings from 'AA' to 'C' to reflect comparative standing within the category.
2) CRISIL may assign rating outlooks for ratings from 'AAA' to 'B'. Ratings on Rating Watch will not carry outlooks. A rating outlook indicates the direction in which a rating may move over a medium-term horizon of one- to-two years. A rating outlook can be 'Positive', 'Stable' or 'Negative'. A 'positive' or 'negative' rating outlook is not necessarily a precursor of a rating change.
3) The contents within parenthesis are a guide to the pronunciation of the rating symbols.
4) A suffix of 'r' indicates investments carrying non-credit risk.
The 'r' suffix indicates that payments on the rated instrument have significant risks other than credit risk. The terms of the instrument specify that the payments to investors will not be fixed, and could be linked to one or more external variables such as commodity prices, equity indices, or foreign exchange rates. This could result in variability in payments - including possible material loss of principal - because of adverse movement in value of the external variables. The risk of such adverse movement in price / value is not addressed by the rating.
5) A suffix of '(so)' indicates instruments with structured obligation
A CRISIL rating on a structured obligation reflects CRISIL's opinion on the degree of credit protection provided by the credit enhancement structure.
The assessment takes into consideration any arrangements for payment on the instrument by an entity other than the issuer to fulfil the financial obligations on the instrument. It also takes into account any other means of enhancing the credit quality of the rated obligation.
6) CRISIL assigns ratings to preference shares on its long-term rating scale. For the purpose of these ratings, preference dividend payments are construed as being equivalent to interest payments, and a failure to pay the same on time is treated as a default. |