Credit Rating Process

Credit report processStep by Step process

  1. Primary discussion with the Client interested for rating
  2. Execute Rating Contract with the client stating the terms and conditions including Fees
  3. Assign the task to an Internal Rating Team (IRT)
  4. IRT formally approach the client for primary information through a set Questionnaire with a given timeframe
  5. IRT collates and analyzes information collected from the client as well as from CRISL Database and identifies the gaps of further information from Market and Client
  6. IRT interacts with clients, visits site and analyzes data submitted by the Client
  7. IRT organizes interview with various professional group and simultaneously interact, exchange views with them and prepare Draft Report and forwards the same to the Internal Review Committee (RC)
  8. IRC forwards a copy of the report to the client for comment and factual confirmation in the report with full supporting data/information
  9. The Internal Review Committee reviews the Report, takes into consideration of the comment of the client, proposes an initial rating and forwards the detailed Report to the Rating Committee.
  10. The Rating Committee reviews the report, awards final ratings and forwards the report to the client. If the client accepts the report, it is published
  11. If the client is not satisfied with the rating, it may submit appeal, with the reasons for not accepting the rating.
  12. Rating Committee considers the appeal if it has validity and convenes a meeting having at least a new member in the Committee;
  13. The Rating Committee awards the final rating

Rating Team

CRISL Rating Team consists of minimum two professionals having appropriate knowledge and experience to ensure quality rating. While forming a rating team CRISL collects declaration from the members that they are eligible to be a member of the rating team as per the guideline of CRISL Ethical code. The CRISL Ethical Code barred the following professionals to be a member of the rating team:

  1. Has any chance of being influenced in the determination of ratings,
  2. Owns securities or derivatives of the rated entity,
  3. Owns securities or derivatives of any entity related to a rated entity, the ownership of which may cause or may be perceived as causing a conflict of interest;
  4. Has in the preceding one year period employment or other significant business relationships with the rated entity that may cause or may be perceived as causing a conflict of interest;
  5. Has a lineal relative(s) who is(are) dependents and currently work(s) for the rated entity; or
  6. Has, or had, any other relationship with the rated entity or any related entity thereof that may cause or may be perceived as causing a conflict of interest.

Internal Review Committee (IRC)

IRC consists of mid level professionals having knowledge and experience in the sector, involved with minimum 20 to 25 rating assignments. The members of IRC must be aware of rating requirement, related methodology, compliance requirements and they must be eligible as per CRISL Ethical Code of Conduct and free of all conflict of interest.

Rating Committee

Rating Committee consists of Senior Professionals of CRISL and at least one person having sectoral knowledge. The members must be aware of CRISL rating system, international rating norms with wide knowledge on the economy and its sectors. The rating awarded by the RC is final. The RC is independent and the Board of CRISL does not have any role / influence on the RC.