Last reviewed on: January 24, 2020

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.

2. Symbol for Provisional Ratings:

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

3. 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.

4. 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 335 days (for Bonds and Debentures) / 425 days (for Bank Loan facilities) for the issuer to execute various documents / complete the formalities for consideration of conversion to final rating.
2. Once the execution of documents / compliance with the conditions etc. (as mentioned in the provisional ratings when assigned) are in place, the provisional rating will be converted to final rating.
3. An issuer, who fails to comply with the documentation requirement / does not take the required action within the applicable time period [as stated above in D (i.)], may seek a suitable extension (in writing) of time for conversion of the Provisional rating to Final rating (i.e. to execute the documents / comply with the conditions) and pay the applicable surveillance fee to Acuite. As part of this request for extension by the issuer, Acuité will also seek necessary information to review the Provisional rating and complete the formal review process.
4. Acuite will initiate the process to withdraw the Provisional rating in cases where the issuer:
1. fails to comply with the documentation requirement / does not take the required action within the applicable time period [as stated above in D (i.)], and
2. also does not seek an extension (in writing) of the Provisional rating to execute the documents / comply with the conditions, fails to submit necessary information for review and fails to pay the applicable surveillance fee to Acuite

5. As part of the withdrawal process, Acuite will seek:
1. Updated business information, financial statements (Audited / Provisional as applicable) & any other information it considers important / critical and management interaction.
2. Payment of dues, if any.

In case of non-cooperation by the rated entity with respect to any one or both of the above requirements, the rating(s) may be suffixed with "Issuer Not Cooperating” and simultaneously withdrawn.