Recovery Risk Ratings indicate the variability in the extent of recovery from a loan, post default. CRISIL's recovery risk rating gives an indication of loss given a default.
Recovery risk rating conveys:
- CRISIL's opinion on the recoverability on the rated instrument over the long term, post default.
Recovery risk rating is not:
- A comment on the timeliness of payment.
The key drivers of a recovery analysis are:
- Collateral coverage
- Quality of assets
- Seniority of the instrument.
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