6.

1 Rating procedure
Policies
ICRAs Code of Conduct Mapping of ICRA's Long-Term and Short-Term Ratings ICRA's Policy on Withdrawal/Suspension of Credit Rating How ICRA Deals with Default

Rating Methodology Rating Procedure

Rating Process Monitoring of ratings What ICRA's Ratings Convey

Rating Process ICRAs rating process involves: o Receipt of rating request from an issuer. Please note that ICRA does not assign unsolicited ratings. o Assigning a rating team The team usually comprises two members. The composition of the team is based on the expertise and skills required for evaluating the issuers business. o Collating information Issuers are provided a list of information requirements and the broad framework for discussions. These information requirements encompass the rating factors specific to the issuers business. ICRA maintains internal records to support its credit ratings in accordance with our internal policies and applicable norms from SEBI. ICRA follows strict processes to maintain confidentiality. All information collected as part of the rating process is used only for rating activities and is not disclosed in ICRAs publications unless approved by the issuer. o Meeting key officials and the management team In addition to the quantitative analysis, rating involves assessment of several qualitative factors that are likely to have a bearing on credit profile of the issuer. This requires extensive interactions with issuers senior officials and top management specifically relating to business and financial risk, managements approach to mitigating risk factors, outlook for the business, management strategy & future plans, and funding policies. Visit to the Works facilitates understanding of the production process and also helps in assessing the progress of projects under implementation. Rating team also has discussions with the auditors and key lenders. o Preview meeting- After the completion of analysis, the findings are discussed at length internally to validate the identification of all key factors, which have a bearing on the rating. These key rating factors are also discussed with the top management of the debt issuing entity to elicit their views. o Rating committee meeting: ICRAs rating committee is the designated authority for assigning ratings. The rating team comprising the analysts presents the key rating factors and its analysis, which are discussed in this committee. The rating committee assigns a rating and all the factors, which influence the rating, are clearly spelt out.

o Rating communication The assigned rating along with key rating factors are communicated to the issuers top management for acceptance. The ratings, which are not accepted, are either rejected or reviewed. The rejected ratings are not disclosed and complete confidentiality is maintained subject to compliance with statutory guidelines. o Rating review If the rating is not acceptable to the issuer, there is a provision for a review of the rating assigned. These reviews are usually taken up only if the issuer provides fresh inputs on the key factors that were considered for assigning the rating. Issuers response is presented to the rating committee for arriving at the final rating decision. o Surveillance Once the rating is accepted, it is kept under continuous surveillance over the life of the instrument. Ratings could undergo a revision if there are changes- internal or external to the issuer that could materially impact the issuers debt servicing capability. Monitoring of Ratings It is obligatory on our part to continuously monitor the accepted ratings over the tenure of the rated instruments. As has been mentioned earlier, the issuer is bound by the mandate signed in our favour to provide information, as and when required by us. The ratings are generally reviewed every year, unless the circumstances of the case warrant either an earlier or more frequent review. A review could lead to either a retention or revision of the rating. The review process is largely similar to the initial rating process. On completion of the review exercise, the rating rationale which explains the key rating factors that support the rating decision is disclosed to the public and is posted on the website which is accessible free of charge.