Fee Structure For Bank Loan Ratings

Acuité Ratings charges fee from clients who seek ratings for their various borrowings.

This disclosure is made pursuant to Reserve Bank of India's communication (dated April 26, 2013, reference no. DBOD.BP.No./5385/21.06.007/2012-13), advising accredited credit rating agencies (CRAs) to disclose the nature of their compensation arrangements and fee structure for bank loan / facility ratings on their websites.

The standard fee structure comprises an initial rating fee (IRF) at the time of the initial rating exercise and an annual surveillance fee (ASF) subsequently for such time as the rating remains outstanding. Fee structures are documented in fee schedules which are communicated and finalized before initiating the rating assignment(s).

The standard fee structure for bank loan facilities is as follows:

a. IRF - 0.04% of the rated amount subject to a minimum of Rs. 40,000/-.
b. ASF - 0.025% of the rated amount per annum subject to a minimum of Rs.35,000/-.

The fees are payable in advance i.e. before the commencement of the rating exercise. All fees are exclusive of GST and other applicable taxes.Any out of pocket expenses incurred by Acuité for management meetings or plant visits are separately reimbursable by the clients.

While the above fee structure represents the indicative fee payable by the clients, the actual fee amounts are determined (subject to appropriate internal approvals) by several factors inter-alia number of group entities, the complexity of the assignment etc.