National Credit Ratings Limited (NCR) is number one for credit union ratings especially for those finance organizations that give cash advance loans and takes high risk deposits from clients.
»The 17th Annual General Meeting was held on Saturday, the 11th November 2023 at 12:00 noon at Dhaka Club Limited, Dhaka   
National Credit Ratings Ltd


A true and fair opinion is our responsibility. NCR gives opinion as to the ability of an entity to meet its financial obligations. The rating process primarily concentrates on business and financial risks. The focus is to assess cash generation capability and its adequacy to meet debt obligations on a timely basis. The analysis attempts to determine the long-term fundamentals and likelihood of change in these, which could affect the credit worthiness of the entity.


The analytical framework of our rating methodology is divided into two interdependent segments. The first deals with the operational characteristics and the second with the financial characteristics. Besides we make use of both the qualitative and quantitative analysis in arriving at the rating opinion. Analysis typically involves at least three years of operating history and financial data as well as forecasts of future performance. To achieve a clearer perspective on relative performance, a company’s performance is compared with that of others in the same industry. In addition a sensitivity analysis is performed to assess a company’s capacity to cope with changes in its operating environment.

The rating accorded is based on numerous factors including, but not restricted to those detailed below:


Operating Environment

The industry’s volatility, its position within the broader economy and effects of economic cycles on the industry. Government regulations, tariff structure; threat from imports; price competitiveness of the domestic industry and pace of technological change; Basis of competition and key success factors; structure of the industry, entry and exit barriers; environmental and political factors.   

Entity’s Relative Position:

Size of the entity and market share; Competitive advantages and weaknesses; Relationship with the suppliers and buyers; Diversification of income sources; Technology.


Stand alone Financial Strength

Capital structure, profitability, liquidity position and financial flexibility; Financial projections; Free cash flows and their sensitivity to various economic industrial and business risks over the medium term; Accounting policies and practices.



Background and history of the sponsors; Corporate strategy and philosophy; Quality of management and management capability under stress; Organizational structure, personnel policies including succession planning.


Limitations of Ratings:

Credit rating provides an independent and fair opinion on the credit worthiness of an entity or instrument. Ratings are not an indication of how secure an investment is as a store of wealth and is not recommendations for investment. They do not take into account many aspects which influence an investment decision. They do not, for example, evaluate the reasonableness of the issue price, possibilities for capital gains or take into account the liquidity in the secondary market. Although these are often related to the credit risk, the rating essentially is an opinion on the relative quality of the credit risk.


Rating Methodologies:


Bank Loan Rating Methodology Brokerage House Rating Methodology
Corporate Rating Methodology Corporate Issue Rating Methodology
Financial Institutions Rating Methodology General Insurance Rating Methodology
Incorporated Educational Institutions Life Insurance Rating Methodology
Personal Rating Methodology SME Rating Methodology
Social Rating Methodology Trading Entities Rating Methodology
Transition Matrix  

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