1. Credit Rating The process of assigning a symbol with specific reference to the instrument being rated, that acts as an indicator of the current opinion on relative capability on the issuer to service its debt obligation in a timely fashion.

2. Credit Rating Specificity: To a debt instruments Relativity: Rating based on the capability & willingness of the issuer of the instrument to service debt obligations. Guidance: To the investors/creditors Not a Recommendation: No recommendation to buy, hold or sell an instrument

3. Broad Parameters: Information supplied by the issuer & from other sources including personal interactions. No guarantee Quantitative & Qualitative Information

4. Credit Rating Process Contract Between Rater and Client Sending Expert Team to Clients Place Data Collection Data Analysis Discussion Credit Report Preparation Submission to Grading Committee Grade Communication to client

5. Credit Rating System – Growth Factors Every Time a rating is assigned, the agencys name, integrity and credibility are online and subject to inspection by the whole community Factors Like: Objectivity of opinions, Professionalism Relevant Expertise, Strict rules of confidentiality

6. Growth Factors Credibility and Independence Capital Market Mechanism Disclosure Requirements Credit Education Creation of Debt Market

7. International Rating agencies Moodys Investors Service (Moodys) Standard & Poors corporation (S&P) Duff and Phelps Credit Rating Co. (DCR) Japan Credit Rating Agency (JCR)

8. CRISIL Credit Rating and Information Services of India Ltd. Jointly promoted by ICICI, Nationalized and foreign banks, and Insurance Companies in 1987. Services Offered are : Rating, Information Services, infrastructure and consultancy.

9. ICRA Investment Information and Credit Rating Agency of India Ltd. Promoted in 1991 by IFCI & 21 other shareholders comprising nationalized banks. Services offered are: Rating Services, Advisory services and investment information services.

10. CARE Credit Analysis & Research Incorporated in 1992 with the combined efforts of IDBI, and several other banks & insurance companies.

11. Ratings ICRA: (Debentures, Bonds & Preference Shares) LAAA (highest safety), LAA+, LAA, LAA- (High safety), LA+,LA, LA-(Adequate safety), LBBB+, LBBB, LBBB-(Moderate Safety), LBB+, LBB, LBB-(Inadequate safety), LB+, LB, LB- (Risk Prone), LC+, LC, LC-(Substantial Risk), LD (Default extremely speculative)

12. Ratings by CRISIL AAA (Highest Safety) AA (High Safety) A (Adequate Safety) BBB (Moderate Safety) BB (Inadequate Safety) B (High Risk) C (Substantial Risk) D (Default)