Policy on Provisional Ratings

Last Reviewed On: July 27, 2019

  1. Provisional Ratings:
    1. Provisional ratings are assigned by Acuité to debt instruments where certain important actions and/or execution of certain documents governing the ratings are yet to be completed. These actions / steps may comprise execution of the guarantee deed by the group / parent company or Government, appointment of debenture trustee, finer details regarding the structured payment mechanism and other factors based on which the rating is assigned.
    2. Subsequently, upon execution of the requisite documents / completion of the required actions, the provisional ratings are converted into final ratings.


  1. Symbol for Provisional Ratings:

In case of provisional ratings, Acuité prefixes such ratings with the word provisional e.g. "Provisional ACUITE A (SO)”.


  1. Conversion of Provisional Ratings into Final Ratings:

Acuité shall convert the provisional ratings into final ratings as and when the terms such as execution of documents / complying with the conditions etc., as envisaged at the time of assignment of provisional ratings are fulfilled within the agreed time frame.


  1. Time frame for complying with the agreed terms, execution of documents and withdrawal of ratings:
    1. Acuité shall disseminate the provisional ratings through its website and provide six (06) months’ time for the issuer to execute various documents / complete the formalities. However, if the requisite steps are not taken and/or the formalities are not completed, within the prescribed time frame, Acuité may extend the time frame and simultaneously extend the Provisional Rating’s validity period depending on the circumstances. The extended time period shall not be more than twelve (12) months from the date of assignment of provisional rating.
    2. Once the execution of documents / complying with the conditions etc. (as mentioned in the provisional ratings when assigned) are in place, the provisional rating will be converted to final rating.


    1. If the issuer fails to comply with the documentation requirement / does not take the required action within the extended time period, as indicated at D (i), Acuité depending on the circumstances may:
      1. withdraw the rating; or
      2. place the provisional rating on rating watch


Acuité reserves the right to reaffirm / revise the provisional rating depending on the developments, financials of the rated / guaranteeing entity and/or other factors.