ICRA’s Long-Term Rating Scale
Long-Term rating Scale All Bonds, NCDs, and other debt instruments (excluding Public Deposits) with original maturity exceeding one year.

[ICRA]AAA Instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such instruments carry lowest credit risk.

[ICRA]AA Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.

[ICRA]A Instruments with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such instruments carry low credit risk.

[ICRA]BBB Instruments with this rating are considered to have moderate degree of safety regarding timely servicing of financial obligations. Such instruments carry moderate credit risk.

[ICRA]BB Instruments with this rating are considered to have moderate risk of default regarding timely servicing of financial obligations.

[ICRA]B Instruments with this rating are considered to have high risk of default regarding timely servicing of financial obligations.

[ICRA]C Instruments with this rating are considered to have very high risk of default regarding timely servicing of financial obligations.

[ICRA]D Instruments with this rating are in default or are expected to be in default soon.

Note: For the rating categories [ICRA]AA through to [ICRA]C, the modifiers + (plus) or – (minus) may be appended to the rating symbols to indicate their relative position within the rating categories concerned. Thus, the rating of [ICRA]AA+ is one notch higher than [ICRA]AA, while [ICRA]AA- is one notch lower than [ICRA]AA.

ICRA’s Medium-Term Rating Scale (only for Public Deposits)
Medium-Term Rating Scale All Public Deposit Programmes.

MAAA The highest-credit-quality rating assigned by ICRA. The rated deposits programme carries the lowest credit risk.

MAA The high-credit-quality rating assigned by ICRA. The rated deposits programme carries low credit risk.

MA The adequate-credit-quality rating assigned by ICRA. The rated deposits programme carries average credit risk.

MB The inadequate-credit-quality rating assigned by ICRA. The rated deposits programme carries high credit risk.

MC The risk-prone-credit-quality rating assigned by ICRA. The rated deposits programme carries very high credit risk.

MD The lowest-credit-quality rating assigned by ICRA. The rated instrument has very low prospects of recovery.

Note: For the rating categories MAA through to MC (pertaining to the Medium Term Rating Scale), the modifiers + (plus) or – (minus) may be appended to the rating symbols to indicate their relative position within the rating categories concerned. Thus, the rating of MAA+ is one notch higher than MAA, while MAA- is one notch lower than MAA.

ICRA’s Short-Term Rating Scale
Short-Term Rating Scale All instruments with original maturity within one year.

[ICRA]A1 Instruments with this rating are considered to have very strong degree of safety regarding timely payment of financial obligations. Such instruments carry lowest credit risk.

[ICRA]A2 Instruments with this rating are considered to have strong degree of safety regarding timely payment of financial obligations. Such instruments carry low credit risk.

[ICRA]A3 Instruments with this rating are considered to have moderate degree of safety regarding timely payment of financial obligations. Such instruments carry higher credit risk as compared to instruments rated in the two higher categories.

[ICRA]A4 Instruments with this rating are considered to have minimal degree of safety regarding timely payment of financial obligations. Such instruments carry very high credit risk and are susceptible to default.

[ICRA]D Instruments with this rating are in default or expected to be in default on maturity.

Note: For the short-term ratings [ICRA]A1 through to [ICRA]A4, the modifier + (plus) may be appended to the rating symbols to indicate their relative position within the rating levels concerned. Thus, the rating of [ICRA]A1+ is one notch higher than [ICRA]A1 and so on.

ICRA’s Issuer Rating Scale
An Issuer Rating is an opinion on the general creditworthiness of the rated issuer and is not specific to any particular debt instrument.

With effect from September 1, 2017, ICRA has aligned the Issuer Rating Scale with the Long-Term Rating Scale. The aforesaid change in the rating scale is not to be construed as a change in the rating.

[ICRA]AAA (earlier denoted as IrAAA) Issuers with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such issuers carry lowest credit risk.

[ICRA]AA (earlier denoted as IrAA) Issuers with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such issuers carry very low credit risk.

[ICRA]A (earlier denoted as IrA) Issuers with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such issuers carry low credit risk.

[ICRA]BBB (earlier denoted as IrBBB) Issuers with this rating are considered to have moderate degree of safety regarding timely servicing of financial obligations. Such issuers carry moderate credit risk.

[ICRA]BB (earlier denoted as IrBB) Issuers with this rating are considered to have moderate risk of default regarding timely servicing of financial obligations.

[ICRA]B (earlier denoted as IrB) Issuers with this rating are considered to have high risk of default regarding timely servicing of financial obligations.

[ICRA]C (earlier denoted as IrC) Issuers with this rating are considered to have very high risk of default regarding timely servicing of financial obligations.

[ICRA]D (earlier denoted as lrD) Issuers with this rating are in default or are expected to be in default soon.

Note: For the rating categories [ICRA]AA through to [ICRA]C, the modifier + (plus) or – (minus) may be appended to the rating symbols to indicate their relative position within the rating categories concerned. Thus, the rating of [ICRA]AA+ is one notch higher than [ICRA]AA, while [ICRA]AA- is one notch lower than [ICRA]AA.

ICRA also assigns Issuer Ratings to Insurance Companies which are opinions on their ability to pay policy-holder obligations and claims in a timely manner.

ICRA’s Rating Scale for Instruments supported by Explicit Credit Enhancement
Long term Credit Enhancement instruments The instruments with original maturity exceeding one year

[ICRA]AAA(CE) Instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such instruments carry lowest credit risk.

[ICRA]AA(CE) Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.

[ICRA]A(CE) Instruments with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such instruments carry low credit risk.

[ICRA]BBB(CE) Instruments with this rating are considered to have moderate degree of safety regarding timely servicing of financial obligations. Such instruments carry moderate credit risk.

[ICRA]BB(CE) Instruments with this rating are considered to have moderate risk of default regarding timely servicing of financial obligations.

[ICRA]B(CE) Instruments with this rating are considered to have high risk of default regarding timely servicing of financial obligations.

[ICRA]C(CE) Instruments with this rating are considered to have very high likelihood of default regarding timely payment of financial obligations.

[ICRA]D(CE) Instruments with this rating are in default or are expected to be in default soon.

Note: For the rating categories [ICRA]AA(CE) through to [ICRA]C(CE), the modifiers + (plus) or – (minus) may be appended to the rating symbols to indicate their relative position within the rating categories concerned. Thus, the rating of [ICRA]AA+(CE) is one notch higher than [ICRA]AA(CE), while [ICRA]AA-(CE) is one notch lower than [ICRA]AA(CE).

Short term Credit Enhanced Instruments The instruments with original maturity of up to one year

[ICRA]A1(CE) Instruments with this rating are considered to have very strong degree of safety regarding timely payment of financial obligation. Such instruments carry lowest credit risk.

[ICRA]A2(CE) Instruments with this rating are considered to have strong degree of safety regarding timely payment of financial obligation. Such instruments carry low credit risk.

[ICRA]A3(CE) Instruments with this rating are considered to have moderate degree of safety regarding timely payment of financial obligation. Such instruments carry higher credit risk as compared to instruments rated in the two higher categories.

[ICRA]A4(CE) Instruments with this rating are considered to have minimal degree of safety regarding timely payment of financial obligation. Such instruments carry very high credit risk and are susceptible to default.

[ICRA]D(CE) Instruments with this rating are in default or expected to be in default on maturity.

Note: For the short-term ratings [ICRA]A1(CE) through to [ICRA]A4(CE), the modifier + (plus) may be appended to the rating symbols to indicate their relative position within the rating levels concerned. Thus, the rating of [ICRA]A1+(CE) is one notch higher than [ICRA]A1(CE) and so on.

Structured Finance Rating
Long term structured finance instruments. The instruments with original maturity exceeding one year

[ICRA]AAA(SO) Instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such instruments carry lowest credit risk.

[ICRA]AA(SO) Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.

[ICRA]A(SO) Instruments with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such instruments carry low credit risk.

[ICRA]BBB(SO) Instruments with this rating are considered to have moderate degree of safety regarding timely servicing of financial obligations. Such instruments carry moderate credit risk.

[ICRA]BB(SO) Instruments with this rating are considered to have moderate risk of default regarding timely servicing of financial obligations.

[ICRA]B(SO) Instruments with this rating are considered to have high risk of default regarding timely servicing of financial obligations.

[ICRA]C(SO) Instruments with this rating are considered to have very high likelihood of default regarding timely payment of financial obligations.

[ICRA]D(SO) Instruments with this rating are in default or are expected to be in default soon.

The Structured Finance ratings assigned by ICRA also factor in the estimate of the relative potential loss to the investor (taking into account credit enhancements, if any) over the tenure of the rated instrument.

Note: For the rating categories [ICRA]AA(SO) through to [ICRA]C(SO), the modifiers + (plus) or – (minus) may be appended to the rating symbols to indicate their relative position within the rating categories concerned. Thus, the rating of [ICRA]AA+(SO) is one notch higher than [ICRA]AA(SO), while [ICRA]AA-(SO) is one notch lower than [ICRA]AA(SO).

Short term structured finance instruments. The instruments with original maturity of upto one year

[ICRA]A1(SO) Instruments with this rating are considered to have very strong degree of safety regarding timely payment of financial obligation. Such instruments carry lowest credit risk.

[ICRA]A2(SO) Instruments with this rating are considered to have strong degree of safety regarding timely payment of financial obligation. Such instruments carry low credit risk.

[ICRA]A3(SO) Instruments with this rating are considered to have moderate degree of safety regarding timely payment of financial obligation. Such instruments carry higher credit risk as compared to instruments rated in the two higher categories.

[ICRA]A4(SO) Instruments with this rating are considered to have minimal degree of safety regarding timely payment of financial obligation. Such instruments carry very high credit risk and are susceptible to default.

[ICRA]D(SO) Instruments with this rating are in default or expected to be in default on maturity.

The Structured Finance ratings assigned by ICRA also factor in the estimate of the relative potential loss to the investor (taking into account credit enhancements, if any) over the tenure of the rated instrument.

Note: For the short-term ratings [ICRA]A1(SO) through to [ICRA]A4(SO), the modifier + (plus) may be appended to the rating symbols to indicate their relative position within the rating levels concerned. Thus, the rating of [ICRA]A1+(SO) is one notch higher than [ICRA]A1(SO) and so on.

ICRA Mutual Fund Credit Risk Ratings Scale & Definitions
The Structured Finance ratings assigned by ICRA also factor in the estimate of the relative potential loss to the investor (taking into account credit enhancements, if any) over the tenure of the rated instrument.

ICRA’s Long-Term Debt Fund Credit Risk Rating Scale
This scale is used to rate the underlying credit risk of debt funds portfolio on the long term rating scale

[ICRA]AAAmfs Schemes with this rating are considered to have the highest degree of safety regarding timely receipt of payments from the investments that they have made.

[ICRA]AAmfs Schemes with this rating are considered to have the high degree of safety regarding timely receipt of payments from the investments that they have made.

[ICRA]Amfs Schemes with this rating are considered to have the adequate degree of safety regarding timely receipt of payments from the investments that they have made.

[ICRA]BBBmfs Schemes with this rating are considered to have the moderate degree of safety regarding timely receipt of payments from the investments that they have made.

[ICRA]BBmfs Schemes with this rating are considered to have moderate risk of default regarding timely receipt of payments from the investments that they have made.

[ICRA]Bmfs Schemes with this rating are considered to have high risk of default regarding timely receipt of payments from the investments that they have made.

[ICRA]Cmfs Schemes with this rating are considered to have very high risk of default regarding timely receipt of payments from the investments that they have made.

Note: For the rating categories [ICRA]AAmfs through to [ICRA]Cmfs, the modifiers + (plus) or – (minus) may be appended to the rating symbols to indicate their relative position within the rating categories concerned. Thus, the rating of [ICRA]AA+mfs is one notch higher than [ICRA]AAmfs, while [ICRA]AA-mfs is one notch lower than [ICRA]AAmfs.

ICRA’s Short-Term debt fund Credit Risk Rating Scale
This scale applies to debt funds with weighted average maturity up to one year. Such funds would generally include liquid funds and cash funds. Benchmark maturity for this scale is 12 months.

[ICRA]A1mfs Schemes with this rating are considered to have very strong degree of safety regarding timely receipt of payments from the investments that they have made.

[ICRA]A2mfs Schemes with this rating are considered to have strong degree of safety regarding timely receipt of payments from the investments that they have made.

[ICRA]A3mfs Schemes with this rating are considered to have moderate degree of safety regarding timely receipt of payments from the investments that they have made.

[ICRA]A4mfs Schemes with this rating are considered to have minimal degree of safety regarding timely receipt of payments from the investments that they have made.

Note: For the short-term ratings [ICRA]A1mfs through to [ICRA]A4mfs, the modifier + (plus) may be appended to the rating symbols to indicate their relative position within the rating levels concerned. Thus, the rating of [ICRA]A1+mfs is one notch higher than [ICRA]A1mfs and so on.

Special Symbols
* Rating withdrawn
@ Under rating watch with negative implications
& Under rating watch with developing implications
% Under rating watch with positive implications
^ Rating Suspended
(SO) Structured Obligation
(S) Supported by Letter of Comfort or other such forms of support; or a guarantee or other such forms of support without a well-defined payment mechanism. This has been replaced with the (CE) suffix w.e.f September 1, 2019
Provisional Provisional Rating
(hyb) Hybrid instrument
PP-MLD Principal Protected Market Linked Debentures
(CE) Credit Enhancement

Notes

(SO) The letters ‘SO’ in parenthesis suffixed to a rating symbol stand for “Structured Obligation”. The (SO) suffix is used to denote ratings assigned to securitization transactions and capital protection-oriented mutual fund schemes. The (SO) suffix which was earlier used alongside the rating symbol for the debt instruments backed by a guarantee (or any other such form of support) with a well-defined payment mechanism has been replaced with the (CE) suffix w.e.f September 1, 2019.

(S) The letter ‘S’ in parenthesis suffixed to a rating symbol denotes that the rating is supported by a Letter of Comfort or other such forms of support; or a guarantee or other such forms of support without a well-defined payment mechanism. An S rating is specific to the rated issue, its terms, and its structure. S ratings do not represent ICRA’s opinion on the general credit quality of the issuers concerned. This has been replaced with the (CE) suffix w.e.f September 1, 2019

(hyb) The letters ‘hyb’ in parenthesis suffixed to a rating symbol stand for “hybrid”, indicating that the rated instrument is a hybrid subordinated instrument with equity-like loss-absorption features; such features may translate into higher levels of rating transition and loss severity vis-a-vis conventional debt instruments

PP-MLD The letters ‘PP-MLD’ prefixed to a rating symbol stand for “Principal Protected Market Linked Debentures”. According to the terms of the rated instrument, the amount invested, that is the principal, is protected against erosion while the returns on the investment could vary, being linked to movements in one or more variables, such as equity indices, commodity prices, and/or foreign exchange rates. The rating assigned expresses ICRA’s current opinion on the credit risk associated with the issuer concerned. The rating does not address the risks associated with variability in returns resulting from adverse movements in the variable(s) concerned.

(CE) The letters ‘CE’ in parenthesis suffixed to a rating symbol stand for “Credit Enhancement”.The (CE) suffix mentioned alongside the rating symbol indicates that the rated instrument/facility is supported by some form of explicit credit enhancement. A CE rating is specific to the rated instrument/facility, its terms and its structure and does not represent ICRA’s opinion on the general credit quality of the entity concerned.

Liquidity Indicator Definitions
Liquidity indicators for non-financial sector entities
Superior/ Strong: Entities with superior or strong liquidity are likely to meet all their near-term funding requirements and obligations comfortably through internal sources of cash, including the cash generated from operations and cash and cash equivalents held. The dependence of such entities on external funding sources is expected to be minimal.

Adequate: Entities with adequate liquidity are likely to be able to meet their near-term commitments through internal as well as external sources of cash and be left with sufficient cash surpluses.

Stretched: Entities with stretched liquidity are expected to have scarce internal and external funding sources to meet their near-term commitments.

Poor: Entities with poor liquidity are likely to or are already falling short of meeting even their near-term debt repayment obligations, in the absence of commensurate internal and external funding sources.

Liquidity indicators for financial sector entities (banks and NBFCs)
Superior/ Strong: Entities with superior or strong liquidity are expected to have positive cumulative mismatches in their asset and liability maturity profile over the near term.

Adequate: Entities with adequate liquidity are expected to have minimal negative cumulative mismatches in their asset and liability maturity profile over the near term.

Stretched: Entities with stretched liquidity are expected to have high level of negative cumulative mismatches in their asset and liability maturity profile over the near term.

Poor: Entities with poor liquidity are expected to have very high level of negative cumulative mismatches in their asset and liability maturity profile over the near term.

Note: In case of NBFCs, cumulative mismatches in asset and liability maturity profile are estimated after factoring-in the undrawn credit lines from banks and financial institutions.

Liquidity indicators for securitization transactions
Superior/ Strong: Superior or strong liquidity indicates that the near-term payout obligations on the instrument are expected to be comfortably met through the underlying pool cash flows and the available credit enhancement.

Adequate: Adequate liquidity indicates that the near-term payout obligations on the instrument are likely to be met through the underlying pool cash flows and the available credit enhancement.

Stretched: Stretched liquidity indicates that the underlying pool cash flows and the available credit enhancement may fall short of meeting the near-term payout obligations on the instrument.

Poor: Poor liquidity indicates that the underlying pool cash flows and the available credit enhancement are highly likely to or are already falling short of meeting the near-term payout obligations on the instrument.

Note: The above is a general description of the liquidity indicators for non-financial sector entities, financial sector entities and securitization transactions considered by ICRA. For a more specific description of the liquidity position of any rated entity, lenders, investors and other market participants may refer to the rating rationale of the entity published on ICRA’s website www.icra.in after September 1, 2019.



Expected Loss Rating Scale
[INFRA] EL 1 Instruments rated ʻEL 1ʼ are considered to have the lowest expected loss
[INFRA] EL 2 Instruments rated ʻEL 2ʼ are considered to have very low expected loss
[INFRA] EL 3 Instruments rated ʻEL 3ʼ are considered to have low expected loss
[INFRA] EL 4 Instruments rated ʻEL 4ʼ are considered to have moderate expected loss
[INFRA] EL 5 Instruments rated ʻEL 5ʼ are considered to have high expected loss
[INFRA] EL 6 Instruments rated ʻEL 6ʼ are considered to have very high expected loss
[INFRA] EL 7 Instruments rated ʻEL 7ʼ are considered to have highest expected loss
Recent Releases

  • Update on reason for delay in periodic surveillance

    Rationale / 20 Oct 2020

  • Greentech Mega Food Park Private Limited: Rating continues to remain under issuer Non-Cooperating category, Ratings downgraded based on best available information

    Rationale / 20 Oct 2020

  • Mahindra Agri Solutions Limited: Rating reaffirmed; outlook revised to Positive

    Rationale / 20 Oct 2020