ICRA’s service of Grading of Construction Entities is designed to provide lenders and sector participants with an independent opinion on the quality of the entity Graded. The unique Grading methodology developed for the purpose, encompasses all entities in a construction project: the contractor, the consultant, the project owner, and the project itself. The service of Grading, by providing an independent opinion on the quality of the entity Graded, is designed to enhance the lenders’ confidence in the construction sector participants. Besides, the Gradings may also benefit the participants by highlighting their competencies and helping them stand out in a crowd.
The methodology for the Grading of construction entities entails analysis of all relevant risks under two broad categories: business risk and financial risk. The assessment process commences at the request of the entity concerned. Once the mandate letter is received from the entity, a team of ICRA analysts takes up the task of preparing a report on that entity, highlighting its business and financial risks. Subsequently, the team prepares a report and presents it to the Grading Committee for assessment. The whole process is interactive and uses input from sector experts. ICRA ensure strict confidentiality of all information collected during the assessment process.
ICRA Grading Symbols for Contractors
CR1 Very strong contract execution capacity.
CR2 Strong contract execution capacity.
CR3 Moderate Contract execution capacity.
CR4 Inadequate contract execution capacity.
CR5 Weak contract execution capacity.
ICRA Grading Feature