Financial Sector Ratings
Rating Scale

Rating Process

Long term securities: Securities with original maturity exceeding one year

Ratings Definition
ACUITE AAA Securities with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such securities carry lowest credit risk.
ACUITE AA Securities with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such securities carry very low credit risk
ACUITE A Securities with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such securities carry low credit risk.
ACUITE BBB Securities with this rating are considered to have moderate degree of safety regarding timely servicing of financial obligations. Such securities carry moderate credit risk
ACUITE BB Securities with this rating are considered to have moderate risk of default regarding timely servicing of financial obligations.t
ACUITE B Securities with this rating are considered to have high risk of default regarding timely servicing of financial obligations.
ACUITE C Securities with this rating are considered to have very high risk of default regarding timely servicing of financial obligations.
ACUITE D Securities with this rating are in default or are expected to be in default soon.

Acuité may apply '+' (plus) or '-' (minus) signs for ratings from 'ACUITE AA' to 'ACUITE C' to reflect comparative standing within the category.
A 'rating outlook' indicates Acuités view on the expected direction of the rating movement in the near to medium term. Acuite shall assign a rating Outlook and disclose the same in the Press Release. Acuite shall use the following standard descriptors for "Rating Outlook"

For Short Term Instrument

  • Stable
  • Positive
  • Negative

Outlooks are not assigned to:

  • Short term ratings
  • Ratings in the 'C' and 'D' categories
  • Ratings on watch
  • Ratings of securitization transactions backed by pool of loans
Short term securities: Securities with original maturity of up to one year

Ratings Definition
ACUITE A1 Securities with this rating are considered to have very strong degree of safety regarding timely payment of financial obligations. Such securities carry lowest credit risk.
ACUITE A2 Securities with this rating are considered to have strong degree of safety regarding timely payment of financial obligations. Such securities carry low credit risk.
ACUITE A3 Securities with this rating are considered to have moderate degree of safety regarding timely payment of financial obligations. Such securities carry higher credit risk as compared to instruments rated in the two higher categories.
ACUITE A4 Securities with this rating are considered to have minimal degree of safety regarding timely payment of financial obligations. Such securities carry very high credit risk and are susceptible to default
ACUITE D Securities with this rating are in default or expected to be in default on maturity.

Acuité may apply '+' (plus) or '-' (minus) signs for ratings from 'ACUITE AA' to 'ACUITE C' to reflect comparative standing within the category.
Rating Watch: 'Rating watch' indicates Acuités view on the expected direction of the rating movement in the short term. Acuite shall use following standard descriptors when a security is placed on "Rating Watch":

  • "Rating Watch with Positive Implications"
  • "Rating Watch with Developing Implications"
  • "Rating Watch with Negative Implications"

A rating is placed on watch in case the credit quality of the issuer/issue is affected by specific events, the impact of which cannot be entirely assessed at that point in time. However, a listing under rating watch does not imply that a rating will necessarily change. Acuité may also revise ratings without first placing the rating on watch.

Note: "The above rating scale also applies to ratings on bank loans and other instruments."

All different rating criteria are available on http://acuite.in/rating-criteria.htm