Rating Rationale
June 26, 2020 | Mumbai
IIFL Finance Limited
Rating outlook revised to 'Negative', ratings reaffirmed; 'CRISIL AA/Negative' assigned to NCD  
 
Rating Action
Total Bank Loan Facilities Rated Rs.2000 Crore
Long Term Rating CRISIL AA/Negative (Outlook revised from 'Stable' and rating reaffirmed)
 
Rs.5000 Crore Non Convertible Debentures*# CRISIL AA/Negative (Assigned)
Rs.325 Crore Non Convertible Debentures^ CRISIL AA/Negative (Outlook revised from 'Stable' and rating reaffirmed)
Rs.2500 Crore Non Convertible Debentures^* (Reduced from Rs.5000 Crore) CRISIL AA/Negative (Outlook revised from 'Stable' and rating reaffirmed)
Subordinated Debt Aggregating Rs.498.37 Crore^ CRISIL AA/Negative (Outlook revised from 'Stable' and rating reaffirmed)
Rs.1500 Crore Long Term Principal Protected Market Linked Debentures^ CRISIL PP-MLD AAr/Negative (Outlook revised from 'Stable' and rating reaffirmed)
Rs.500 Crore Commercial Paper CRISIL A1+ (Reaffirmed)
Rs.8000 Crore Commercial Paper^ CRISIL A1+ (Reaffirmed)
Rs.8000 Crore Commercial Paper Programme(IPO Financing)^ CRISIL A1+ (Reaffirmed)
1 crore = 10 million
Refer to annexure for Details of Instruments & Bank Facilities
^Transferred from India Infoline Finance Ltd
*Interchangeable between secured and subordinated debt
#For Retail Bond Issuance
Detailed Rationale

CRISIL has revised its rating outlook on the long-term debt instruments and bank facilities of IIFL Finance Limited (IIFL Finance) to 'Negative' from 'Stable' while reaffirming the long term rating at 'CRISIL AA/CRISIL PP-MLD AAr'. The short term rating has been reaffirmed at 'CRISIL A1+'. CRISIL has assigned 'CRISIL AA/Negative' rating to the Rs 5000 crore non-convertible debentures (NCDs) of the company. Also, CRISIL has withdrawn ratings on Rs 2500 crore NCDs, at the company's request as there is no amount outstanding against the rated instruments. This is in line with CRISIL's withdrawal policy.
 
The outlook revision factors in the expected pressure on IIFL Finance's asset quality due to the nationwide lockdown and the challenging macro-economic environment. CRISIL expects the gross domestic product (GDP) to contract by about 5.0% in fiscal 2021 compared to an expansion of 4.1% in fiscal 2020, this is likely to impact many sectors and consequently, the income streams borrowers in the upcoming quarters. Further, some of the asset classes in which the company operates ' micro, small and medium enterprises (MSME Finance; 21% of the overall assets under management (AUM) as on March 31, 2020), micro finance (9% of the AUM) and home loans (33% of AUM), particularly to self-employed and cash salaried customers, could witness relatively higher challenges as compared to other segments.
 
Furthermore, the company's fundraising, which had seen an improving trajectory in the fourth quarter of fiscal 2020, was impacted in the last few months, in line with peers. Nevertheless, the funding environment for non-banks has been improving in the past few weeks, including IIFL Finance, supported by various schemes and measures announced by the government and the Reserve Bank of India. On a consolidated basis, IIFL Finance had raised Rs 1015 crore in the first quarter of fiscal 2021 till June 15, 2020 (Rs 22,407 crores was raised between April 2019 and March 2020). Nevertheless, the company has a healthy pipeline and expects to raise additional funds in the upcoming weeks for which it has already received the sanctions. Ability of the company to raise funds from diverse sources at competitive rates in the current environment will be key monitorable.
 
The nationwide lockdown has also impacted disbursements and collections of financial institutions.  Any delay in return to normalcy will put further pressure on collections and asset quality metrics of companies. Additionally, any change in the behavior of borrowers on payment discipline can affect delinquency levels.
 
IIFL Finance had provided a blanket moratorium to all customers under Moratorium 1.0 (March 1' June 30) with an OPT-OUT structure. As of May 25, 2020, about 58% of the AUM had been given the moratorium. Collections had remained low compared to pre-Covid levels due to the moratorium availed by borrowers. However, under the second phase ' Moratorium 2.0 (June 1-August 31), the company has not given a blanket moratorium but provided the borrowers with OPT-IN structure. This along with opening up of branches since last month is expected to lead to a gradual improvement in collections and will remain a key monitorable.
 
In terms of asset quality metrics, overall gross non-performing assets (GNPAs) of IIFL Finance increased to 2.31% as on March 31, 2020 from 1.96% as on March 31, 2019. On the retail side, the company saw an inch up in asset quality across most of the segments especially in the business loans1 segments which includes secured and unsecured lending to MSMEs; GNPAs in this segment increased to 3.7% as on March 31, 2020 from 2.2% as on March 31, 2019. GNPAs in the wholesale book, while had shown some improvement supported partly by write-offs in fiscal 2020, remained high at 3.8% as on March 31, 2020 (4.4% as on March 31, 2019).
 
On the liabilities side, Reserve Bank of India (RBI) had announced regulatory measures under 'Covid-19 - Regulatory Package', whereby lenders were permitted to grant moratorium on bank loans. IIFL Finance group entities have also approached all lenders to avail moratorium on their bank borrowings and the same has been granted by a few of the banks.
 
As on June 18, 2020, the company had a liquidity cushion of Rs 3,791 crore (Rs 528 crore of cash and equivalents and Rs 3263 crore of unutilized bank lines including securitization lines). Against this, it has total debt repayment of Rs 2,289 crore over the four months through September 2020.
 
The ratings continues to reflect the IIFL Finance group's diversified retail product offerings, the extensive branch network and adequate capitalisation. These rating strengths are partially offset by limited seasoning of the loan portfolio.

Analytical Approach

For arriving at the ratings, CRISIL has consolidated the business and financial risk profiles of IIFL Finance and its subsidiaries, including IIFL Home Finance Ltd (IIFL Home) and Samasta Microfinance Ltd (Samasta). This is because all these entities, collectively referred to as the IIFL Finance group, have significant operational, financial, and managerial integration and also operate under a common brand. Further, CRISIL has also factored in the business synergies that IIFL Finance group will have with IIFL Wealth and IIFL Securities, given their common promoters and the shared brand.

Please refer Annexure - List of entities consolidated, which captures the list of entities considered and their analytical treatment of consolidation.

Key Rating Drivers & Detailed Description
Strengths:
* Diversified retail lending portfolio with an extensive branch network
IIFL Finance group, having consolidated assets under management (AUM) of Rs 37,951 crore as on March 31, 2020 (Rs 34,904 crore as on March 31, 2019), is primarily engaged in secured lending across various retail asset classes. IIFL Finance has two lending subsidiaries - IIFL Home and Samasta, through which the mortgage finance and micro finance businesses are carried out.
 
Retail loans account for almost 88% of the AUM as on March 31, 2020, with a high level of granularity (loans with ticket size below Rs 1 crore). Also, around 43% of the portfolio qualifies under priority sector lending. The group had identified four key segments - home loans, business loans [including loan against property (LAP) and lending to micro, small and medium enterprises (MSME)], gold loans and microfinance, as key growth drivers over the medium term. It also operates in two synergistic segments - construction & developer funding and capital market lending. While incremental developer funding will be done on a selective basis to support the home loan business, capital market lending will largely focus on retail clients of IIFL Securities. These four segments form around 87% of the AUM as on March 31, 2020, up from 61% as on March 31, 2016. Further, in line with the strategy to focus on select segments, the group discontinued medical equipment financing from fiscal 2018, and also sold its commercial vehicle (CV) finance portfolio in fiscal 2019.
 
As of March 31, 2020, the IIFL Finance group had a wide network of 2,377 branches spread across 25 states. The group has also made significant investment in technology to effectively benefit from this geographical reach. Going forward, the group plans to leverage business synergies with other IIFL entities for cross-selling of financial products (insurance, mutual funds etc) and other retail loan products, given the already established branch and distribution platform.
 
On a standalone level, IIFL Finance had an AUM of Rs 16,057 crore as on March 31, 2020 (Rs 14,460 crore as on March 31, 2019) primarily towards gold loans (57%), business loans (20%) and developer and construction finance (22%).
 
IIFL Home had an AUM of Rs 18,495 crore as on March 31, 2020 (Rs 18,158 crore as on March 31, 2019) largely toward home loans (67%), followed by loan against property (26%) and construction finance (6%).
 
Samasta had an AUM of Rs 3,400 crore as on March 31, 2020 (Rs 2,285 crore as on March 31, 2019).
 
* Adequate capitalisation
The IIFL Finance group is adequately capitalised, with networth, Tier-I, and overall capital adequacy ratio (CAR) of around Rs 4,766 crore, 13.1%, and 17.6%, respectively, as on March 31, 2020 (Rs 4,359 crore, 13.1% and 18.3%, respectively, as on March 31, 2019). Networth coverage for net NPAs was comfortable at around 17 times as on March 31, 2020 (25 times as on March 31, 2019). On-book gearing as on same date was adequate at around 5.2 times; however, CRISIL'adjusted gearing (on-book borrowings + securitization/assignment) was higher at around 7.7 times. Nevertheless, the group has demonstrated its ability to raise capital from long-term marquee investors such as Fairfax and the CDC group (Rs 1000 crore raised from CDC in fiscal 2017). Given the modest growth plans, capitalisation remains adequate for the current scale of operations. However, the ability to raise capital and manage leverage levels over the medium term will be an important factor.
 
As on March 31, 2020, IIFL Finance (standalone) reported net worth and CRISIL- adjusted gearing stood at Rs 3,608 crore and 4.7 times, respectively. It had a Tier-I CAR and overall CAR of 13.1% and 17.6%, respectively, as on same date. Net worth coverage for net NPAs was around 31 times as on March 31, 2020.
 
IIFL Home had a reported net worth and CRISIL - adjusted gearing of Rs 1,780 crore and 9.9 times, respectively, as on March 31, 2020. Its Tier-I and overall CAR stood at 18.4% and 23.7%, respectively, as on same date. The company's net worth coverage for net NPAs was around 11 times as on March 31, 2020.
 
Samasta's reported net worth and CRISIL-adjusted gearing stood at Rs 509 crore and 3.8 times, respectively, as on March 31, 2020. Tier-I and overall CAR stood at 20.9% and 25.9%, respectively, as on same date.
 
Weaknesses:
* Limited seasoning of some of the asset classes like home loans and MSME loans
IIFL Finance group's loan portfolio (excluding CV finance) has recorded a three-year compound annual growth rate of around 26%. Given the scale up of book in recent years and entry into newer segments, the portfolio remains unseasoned and hence, overall asset quality is yet to be tested through cycles. While certain products have a shorter tenure, and hence, have seen a complete cycle, home loans and MSME lending have limited seasoning so far. Home loans are long tenure products and MSME lending is a relatively recent addition to the product suite. Overall gross NPAs and net NPAs stood at 2.31% and 0.97%, respectively, as on March 31, 2020 (1.96% and 0.63%, respectively, as on March 31, 2019). While increasing focus on small-ticket retail loans will benefit the inherent asset quality over the medium term, ability to underwrite and maintain strong credit practices across asset classes, amid stiff competition from established players, remains to be seen.
 
NPAs in the wholesale book stood while declined, supported partly by write-offs, to 3.8% as on March 31, 2020, from 4.4% a year ago, continued to remain high. Nevertheless, the share of wholesale lending has come down over the past few years and was relatively low at about 11% of the overall AUM as on March 31, 2020.  Nevertheless, given the current macro environment, asset quality on exposures such as developer loans and large ticket loans against property would be a key monitorable for all lenders, including IIFL Finance. Borrowers of such loan categories are more sensitive to an environment of prolonged liquidity tightness. RBIs measure on extension of date of commencement of commercial operations (DCCO) for commercial real estate projects should provide some respite.  
 
Also, retail asset quality, while has remained under control in the past, could witness an increase in delinquencies from current levels across segments due to the economic slowdown. The lockdown has affected the income generation ability and saving of borrowers, especially of the self-employed and micro finance borrower, who typically have a weaker credit profile. In this context, credit costs are expected to increase in the near term.
 
Gross NPA of IIFL Finance (standalone), IIFL Home and Samasta stood at 3.1%, 1.6% and 1.5%, respectively, as on March 31, 2020 ( 3.4%,  0.9% and  0.4%, respectively, as on March 31, 2019).
 
Any sharp deterioration in asset quality, will also impact profitability and capital, and remains a key rating monitorable.
Liquidity Strong

As on June 18, 2020, the company had a liquidity cushion of Rs 3,791 crore (Rs 528 crore of cash and equivalents, Rs 413 crore of unutilized cash credit lines and Rs 2,850 crore of unutilized bank lines including securitization lines). Against this, it has total debt repayment of Rs 2,289 crore over the four months through September 2020.

Outlook: Negative

CRISIL believe that IIFL Finance' collections and thereby asset quality metrics is likely to come under pressure due to the extended nation-wide lockdown and challenging economic environment. Furthermore, fundraising in the recent past has also been lower than expected.

Rating Sensitivity factors
Upward Factors:
* Significant improvement in market position while improving asset quality
* Improvement in profitability, with return on managed assets (RoMA) beyond 3.0% on a sustained basis
 
Downward Factors:
* Deterioration in the asset quality, with GNPA increasing to above 5% over an extended period, thereby impacting profitability
* Further drop in collections metrics and delay in achieving pre-pandemic levels
* Weakening of capitalisation metrics with higher than expected gearing on a sustained basis
* Continued funding access challenges for non-banking sector with limited fund-raising by IIFL Finance Group and reduction in liquidity levels

About IIFL Finance
IIFL Finance is the listed holding company of the IIFL Finance group and is registered as a systemically important non-deposit taking non-banking finance company (NBFC). The group offers various retail lending products, including gold loans, home loans, LAP, business loans, micro finance and capital market based lending (margin funding and loan against shares).  It also offers construction and developer finance.
 
In fiscal 2008, IIFL Finance (erstwhile IIFL Holding Ltd) had launched its retail finance business through the NBFC, Moneyline Credit Ltd, which was later merged with India Infoline Finance, with effect from April 2011. In fiscal 2009, India Infoline Housing Finance Ltd received a registration as a housing finance company from the National Housing Bank and was subsequently renamed as IIFL Home Finance. In fiscal 2017, IIFL Finance ventured into microfinance segment after acquisition of micro lender Samasta Microfinance.
 
In January 2018, IIFL Finance Ltd announced plans to reorganise its corporate structure, and list the three entities - IIFL Finance (loans and mortgages business), IIFL Wealth (wealth and asset management business), and IIFL Securities (capital markets and other businesses). In May 2019, as part of this restructuring scheme, IIFL Wealth and IIFL Securities were demerged from IIFL Finance and subsequently were listed in September 2019. In March 2020, India Infoline Finance was merged into IIFL Finance, the listed entity of the lending business.
 
As of March 31, 2020, promoters held 24.9% stake in IIFL Finance, 29.9% is held by Prem Watsa controlled Fairfax Holdings and 15.5% from CDC Group PLC.
 
CRISIL has also analysed the standalone financials of IIFL Finance. The company reported a total income (net of interest expenses) and profit after tax (PAT) of Rs 1,385 crore and Rs 149 crore, respectively, in fiscal 2020, against Rs 1,597 crore and Rs 451 crore, respectively, in the previous fiscal. The company had networth and total assets of Rs 3,608 crore and Rs 19,362 crore, respectively, as on March 31, 2020. 
 
IIFL Finance (consolidated) had total income (net of interest expenses) and PAT of Rs 2,424 crore and Rs 503 crore (including one-time exceptional expense of Rs 261 crore (post tax), respectively, in fiscal 2020 as against a total income (net of interest expense) of Rs 2,500 crore and PAT of Rs 796 crore (including one-time exceptional gain of Rs 105 crore). Excluding the exceptional items (gain and expenses), PAT stood at Rs 764 crore for FY20 as against a PAT of Rs 691 crore in the previous fiscal.

1Excluding discontinued healthcare finance business
Key Financial Indicators - IIFL Finance (consolidated; CRISIL adjusted numbers)
As on / for the period ended   March 2020 March 2019
Total Assets Rs crore 34341 33239
Total income (net of interest expenses) Rs crore  2424  2500
Profit after tax^ Rs crore 503 796
Gross NPA % 2.31 1.96
Return on managed assets (annualized)^ % 1.2 2.1
Gearing Times 5. 2 5.9
Adjusted gearing Times 7.7 8.0
Excluding the one-time exceptional items, PAT and RoMA stood at Rs 764 crore and 1.8%, for the period ended March 2020 as against a PAT and RoMA of Rs 691 crore and 1.9% for the period ended March 2019
 
Key Financial Indicators - IIFL Finance (standalone; CRISIL adjusted numbers)
As on / for the period ended   March 2020 March 2019
Total income (net of interest expenses) Rs crore 1385 1597
Profit after tax Rs crore  149 451
Gross NPA % 3.1 3.4
Gearing Times 3.3 3.6
Adjusted gearing Times 4.7 4.3

Any other information:
Earnings profile of the company has remained range bound. Return on managed assets [RoMA; profit after tax / (total assets + securitization/assignment)] stood at around 1.2% for the period ended March 31, 2020. The profitability was impacted in fiscal 2020 due one-time provisioning for Covid-19 of Rs 282 crore and reversal of deferred tax of Rs 50 crore, excluding the same, RoMA stood at 1.8% for the above period (around 1.9% for fiscal 2019; excluding the one-time gain on sale of CV business). While the profitability is supported by healthy net interest margin, operating expenses remain high, given the investment in opening of new branches, strengthening of work force and building the technological infrastructure. With the scale up of loan book, operating efficiency is expected to improve gradually, which will support the earning profile. Also, while credit costs have remained under control, the asset quality is likely to see an inch up in fiscal 2021, which will lead to increase in credit cost. Ability of the company to control credit costs will be a key determinant of profitability going forward.

Note on complexity levels of the rated instrument:
CRISIL complexity levels are assigned to various types of financial instruments and are included (where applicable) in the Annexure -- Details of Instrument in this Rating Rationale. For more details on the CRISIL complexity levels, please visit www.crisil.com/complexity-levels.
Annexure - Details of Instrument(s)
ISIN Name of Instrument Date of
Allotment		 Coupon
Rate (%)		 Maturity
Date		 Issue Size
(Rs Crore)		 Complexity Levels Rating Outstanding
with Outlook
NA Commercial Paper
Programme(IPO Financing)^		 NA NA 7-30 days 8000 Simple CRISIL A1+
NA Commercial paper^ NA NA 7-365 days 8000 Simple CRISIL A1+
NA Commercial paper NA NA 7-365 days 500 Simple CRISIL A1+
INE866I07BY4 Debentures#^ 07-Feb-19 9.50% 07-May-22 261 Simple CRISIL AA/Negative
INE866I07BZ1 Debentures#^ 07-Feb-19 9.60% 07-May-22 39 Simple CRISIL AA/Negative
INE866I07CB0 Debentures#^ 07-Feb-19 9.60% 07-May-22 49 Simple CRISIL AA/Negative
INE866I07CD6 Debentures#^ 07-Feb-19 9.75% 07-Feb-24 637 Simple CRISIL AA/Negative
INE866I07CF1 Debentures#^ 07-Feb-19 10.20% 07-Feb-24 126 Simple CRISIL AA/Negative
INE866I08279 Debentures#^ 07-Feb-19 10.00% 07-Feb-29 31 Simple CRISIL AA/Negative
INE866I08295 Debentures#^ 07-Feb-19 10.50% 07-Feb-29 15 Simple CRISIL AA/Negative
INE866I07CJ3 Debentures#^ 06-Sep-19 10.00% 06-Dec-20 98 Simple CRISIL AA/Negative
INE866I07CK1 Debentures#^ 06-Sep-19 9.50% 06-Dec-22 37 Simple CRISIL AA/Negative
INE866I07CL9 Debentures#^ 06-Sep-19 9.85% 06-Dec-22 12 Simple CRISIL AA/Negative
INE866I07CM7 Debentures#^ 06-Sep-19 9.85% 06-Dec-22 65 Simple CRISIL AA/Negative
INE866I08303 Debentures#^ 06-Sep-19 10.00% 06-Jun-25 26 Simple CRISIL AA/Negative
INE866I08311 Debentures#^ 06-Sep-19 10.50% 06-Jun-25 6 Simple CRISIL AA/Negative
NA Debentures**#^ NA NA NA 1098 Simple CRISIL AA/Negative
NA Debentures**^ NA NA NA 325 Simple CRISIL AA/Negative
NA Subordinated Bond**^ NA NA NA 300.37 Complex CRISIL AA/Negative
INE866I08121 Subordinated Bond^ 31-Aug-12 12.15% 30-Aug-22 5 Complex CRISIL AA/Negative
INE866I08121 Subordinated Bond^ 31-Aug-12 12.15% 31-Aug-22 15 Complex CRISIL AA/Negative
INE866I08162 Subordinated Bond^ 05-Nov-12 12.20% 04-Nov-22 23 Complex CRISIL AA/Negative
INE866I07CN5 Subordinated Bond^ 11-Sep-19 9.75% 09-Oct-20 150 Complex CRISIL AA/Negative
INE866I07CO3 Subordinated Bond^ 17-Sep-19 9.85% 17-Jan-23 5 Complex CRISIL AA/Negative
INE866I07CH7 Long Term Principal Protected
Market Linked Debentures^		 26-Jun-19 NA 27-Sep-21 57 Highly Complex CRISIL PP-MLD AAr/Negative
INE866I07CI5 Long Term Principal Protected
Market Linked Debentures^		 26-Jun-19 NA 27-Sep-22 25 Highly Complex CRISIL PP-MLD AAr/Negative
INE866I07CH7 Long Term Principal Protected
Market Linked Debentures^		 17-Jul-19 NA 27-Sep-21 50 Highly Complex CRISIL PP-MLD AAr/Negative
NA Long Term Principal Protected
Market Linked Debentures**^		 NA NA NA 1368 Highly Complex CRISIL PP-MLD AAr/Negative
NA Proposed Long Term
Bank Loan Facility^		 NA NA NA 2000 NA CRISIL AA/Negative
NA Debentures**#& NA NA NA 5000 Simple CRISIL AA/Negative
^Transferred from India Infoline Limited
**not yet issued
# Interchangeable between secured and subordinated debt
&For Retail Bond Issuance
 
Annexure - Details of Rating Withdrawn
ISIN Name of Instrument Date of Allotment Coupon Rate (%) Maturity Date Issue Size
(Rs Crore)		 Complexity Levels
NA Debentures**#^ NA NA NA 2500 Simple
^Transferred from India Infoline Limited
**not yet issued
# Interchangeable between secured and subordinated debt
 
Annexure - List of entities consolidated
Entity Consolidated Rationale for Consolidation
IIFL Home Finance Limited Subsidiary
Samasta Micro Finance Limited Subsidiary
Clara Developers Private Limited Subsidiary
Annexure - Rating History for last 3 Years
  Current 2020 (History) 2019  2018  2017  Start of 2017
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Commercial Paper  ST  8500.00  CRISIL A1+  18-04-20  CRISIL A1+  20-08-19  CRISIL A1+  04-09-18  CRISIL A1+    --  -- 
Commercial Paper Programme(IPO Financing)  ST  8000.00  CRISIL A1+  18-04-20  CRISIL A1+    --    --    --  -- 
Long Term Principal Protected Market Linked Debentures  LT  132.00
26-06-20  		CRISIL PP-MLD AAr/Negative  18-04-20  CRISIL PP-MLD AAr/Stable    --    --    --  -- 
Non Convertible Debentures  LT  1402.00
26-06-20  		CRISIL AA/Negative  18-04-20  CRISIL AA/Stable    --    --    --  -- 
Short Term Debt (Including Commercial Paper)  ST              13-08-18  CRISIL A1+  29-09-17  CRISIL A1+  -- 
                10-05-18  CRISIL A1+       
                09-02-18  CRISIL A1+       
Subordinated Debt  LT  198.00
26-06-20  		CRISIL AA/Negative  18-04-20  CRISIL AA/Stable    --    --    --  -- 
Fund-based Bank Facilities  LT/ST  2000.00  CRISIL AA/Negative  18-04-20  CRISIL AA/Stable    --    --    --  -- 
All amounts are in Rs.Cr.
Annexure - Details of various bank facilities
Current facilities Previous facilities
Facility Amount (Rs.Crore) Rating Facility Amount (Rs.Crore) Rating
Proposed Long Term Bank Loan Facility 2000 CRISIL AA/Negative Proposed Long Term Bank Loan Facility 2000 CRISIL AA/Stable
Total 2000 -- Total 2000 --
Links to related criteria
CRISILs Bank Loan Ratings - process, scale and default recognition
Rating Criteria for Finance Companies
CRISILs Criteria for Consolidation
CRISILs Criteria for rating short term debt

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CRISIL uses the prefix ‘PP-MLD’ for the ratings of principal-protected market-linked debentures (PPMLD) with effect from November 1, 2011 to comply with the SEBI circular, "Guidelines for Issue and Listing of Structured Products/Market Linked Debentures". The revision in rating symbols for PPMLDs should not be construed as a change in the rating of the subject instrument. For details on CRISIL's use of 'PP-MLD' please refer to the notes to Rating scale for Debt Instruments and Structured Finance Instruments at the following link: www.crisil.com/ratings/credit-rating-scale.html