List of ICRA Rated Bonds

ICRA credit ratings convey its opinion about a debt obligation in a symbolic form. The ratings are assigned in terms of INR-denominated debt obligation. The ratings indicate the risk of default on the instruments. Good credit ratings indicate responsible behaviour of the organisation and a good repayment history. ICRA credit ratings only signify the relative credit risk and not any other relative risk arising out of macroeconomic changes.

Formerly known as the Investment Information and Credit Rating Agency of India Limited, ICRA was incorporated in 1991. It is an independent & professional investment information and credit rating agency. Specialised in providing assigning corporate governance ratings, mutual fund ratings, structured finance ratings, etc., ICRA uses a transparent rating system.

Their services are designed to provide guidance and information to institutional and individual investors and creditors. They boost the ability of the borrower to access the money market and capital market for exploring the broader range of investment products available.

ICRA rates rupee-denominated debt instruments issued by manufacturing companies, commercial banks, non-banking finance companies, financial institutions, public sector undertakings and municipalities, among others. ICRA also rates structured obligations and sector-specific debt obligations, such as instruments issued by Power, Telecom and Infrastructure companies. 
The other services offered include Credit Risk Rating of Debt Mutual Funds, an Independent Credit Evaluation (ICE) of the residual debt in entities under the RB's framework for resolution of stressed assets and Rating of security receipts issued by Asset Reconstruction Companies (ARCs) as required by RBI.

For securities with an original maturity exceeding one year, the ICRA rating scale is as follows:

[ICRA]AAA Securities with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such securities carry the lowest credit risk.

[ICRA]AA Securities with this rating are considered to have a high degree of safety regarding the timely servicing of financial obligations. Such securities carry very low credit risk.

[ICRA]A Securities with this rating are considered to have adequate safety regarding the timely servicing of financial obligations. Such securities carry low credit risk.

[ICRA]BBB Securities with this rating are considered to have a moderate degree of safety regarding the timely servicing of financial obligations. Such securities carry moderate credit risk.

[ICRA]BB Securities with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations.

[ICRA]B Securities with this rating are considered to have a high risk of default regarding timely servicing of financial obligations.

[ICRA]C Securities with this rating are considered to have a very high risk of default regarding timely servicing of financial obligations.

[ICRA]D Securities with this rating are in default or are expected to be in default soon.

Note: For the rating categories [ICRA]AA through to [ICRA]C, the modifiers + (plus) or – (minus) may be appended to the rating symbols to indicate their relative position within the rating categories concerned. Thus, the rating of [ICRA]AA+ is one notch higher than [ICRA]AA, while [ICRA]AA- is one notch lower than [ICRA]AA.

ICRA ratings are based on an in-depth study of the industry and an evaluation of the strengths and weaknesses of the company. The inherent protective factors, marketing strategies, competitive edge, level of technological development, operational efficiency, competence and effectiveness of management, hedging of risks, cash flow, trends and potential, liquidity, financial flexibility, government policies, record of debt servicing, sensitivity to possible changes in business/economic circumstances are looked into.

Once the company has accepted a rating, ICRA continuously monitors the corporate, and the rating is monitored till the life of the instrument. The process is known as surveillance. During the surveillance period, all changes affecting the company are taken into account, and the rating, if necessary, is changed upwards or downwards. In other words, a rating is valid during the instrument's life unless changed. What does the suffix + or - with the Rating mean? The suffix + or - may be used with the rating symbol to indicate the comparative position of the instrument within the group covered by the symbol. Thus MAA- lies one notch above MA+.

ICRA does proper due diligence and then offers ratings to the debt issuers depending on their creditworthiness. You should always check the risks associated with the instrument in which you are investing to avoid losing money, and rating scales are one of the best measures to help your decision-making.