Average one-year transition rates for long-term ratings for the last 5-Financial Year Period ended March 31, 2022

Rating Category AAA AA A BBB BB B C D Total
AAA 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0%
AA 0.8% 93.3% 4.2% 0.0% 0.0% 0.0% 0.0% [1]1.7% 100.0%
A 0.0% 1.4% 91.9% 5.6% 0.7% 0.0% 0.0% [2]0.5% 100.0%
BBB 0.0% 0.1% 3.1% 90.4% 5.6% 0.2% 0.2% 0.6% 100.0%
BB 0.0% 0.0% 0.1% 6.3% 86.7% 4.1% 0.5% 2.3% 100.0%
B 0.0% 0.0% 0.0% 0.3% 7.3% 86.3% 0.3% 5.7% 100.0%
C 0.0% 0.0% 0.0% 0.0% 5.3% 26.3% 63.2% 5.3% 100.0%

Notes:

  1. The transition rate from ‘AA’ to ‘D’ category is on account of default by 1 group having 2 entities in a year when the denominator (total no. of ‘AA’ rated issuers) was very low.
  2. The transition rate from ‘A’ to ‘D’ category is high on account of default by 2 single issuers in a year when the denominator (total no. of ‘A’ rated issuers) was very low.