Rating Scale and Definition

Rating Scales and Definition
Long Term Credit Ratings
(Bank/Financial Institutions/NBFIs/Corporate/Debt Instruments)

Rating Scale	Definition
AAA	Excellent quality, offering highest safety for timely servicing of financial obligations. Such institutions carry minimum risk
AA+,AA,AA-	Very strong capacity for timely servicing of financial obligations offering high safety. Such institutions carry very low risk.
A+,A,A-	Strong capacity for timely servicing of financial obligations offering adequate safety. Such institutions carry low credit risk.
BBB+,BBB,BBB-	Adequate capacity for timely servicing of financial obligations offering moderate safety. The rating category denotes a moderate credit risk. However changes in circumstances or economic conditions are more likely to affect the capacity for timely servicing of financial obligations.
BB+,BB,BB-	Inadequate safety for timely servicing of financial obligations. Such institutions carry high credit risk. The entity remains more vulnerable to adverse economic changes over time.
B+,B,B-	Low safety for timely servicing of financial obligations.
CCC, CC, C	Very high risk for timely servicing of financial obligations.
D	Entities with this rating are of the lowest category. They are either in default or likely to be in default soon.

Short Term Credit Ratings
( Bank/Financial Institutions/ NBFIs/Corporate/Debt Instruments)

Rating Scale	Definition
ST-1	Strongest capacity for timely payment of financial commitments and carry lowest credit risk.
ST-2	Strong capacity for timely payment of financial commitments and carry lowest credit risk
ST-3	Satisfactory capacity for timely payment of financial commitments and carry very low credit risk.
ST-4	Moderate capacity for timely payment of financial commitments and carry Moderate credit risk
ST-5	Uncertain capacity for timely payment of financial commitments and carry high credit risk.
ST-6	Indicates actual or inherent payment default.