ICRA Ratings & Grades
ICRA’s credit ratings are symbolic representations of its current opinion on the relative credit risks associated with the rated debt obligations/issues. These ratings are assigned on an Indian (that is, national or local) credit rating scale for Rupee (local currency) denominated debt obligations. ICRA ratings may be understood as relative rankings of credit risk within India. ICRA ratings are not designed to enable any rating comparison among instruments across countries; rather these address the relative credit risks within
Credit ratings apart, ICRA also assigns Corporate Governance Ratings, besides Performance Ratings, Gradings and Rankings to mutual funds, construction companies and hospitals, which have different meanings. Users are advised to refer to ICRA’s service brochures for details.
- ICRA ratings are only an opinion on the relative ranking of credit risk. Even the debt obligations rated in the highest category carry a certain degree of credit risk, although such risk would be the lowest when compared with the credit risks associated with obligations rated in the lower rating categories.
- ICRA rating categories group debt obligations with similar but not necessarily identical credit risks.
- ICRA ratings convey only the relative credit risk; that is, they do not reflect the other investment risks arising out of changes in market conditions, viz. interest rates or liquidity.
- ICRA ratings are not always constant and are subject to change. ICRA’s credit ratings reflect the issuers’ inherent credit quality, which in many cases may not remain constant at all times.
- Users of ICRA’s ratings are advised to regularly refer to ICRA’s rating releases, publications and/or website (www.icraratings.com, www.icra.in) for rating updates.
- While ICRA takes reasonable care to ensure that all such information is reliable, it makes no representation or warranty, express or implied, as to the accuracy, authenticity, timeliness or completeness of any such information. Further, ICRA ratings are not to be construed as recommendation to buy, sell, or deal in the rated instruments.