For Long Term Instruments

Ratings	Interpretation
ACUITE AAA SO	Highest Safety, Lowest Credit Risk
ACUITE AA SO	High Safety, Very Low Credit Risk
ACUITE A SO	Adequate Safety, Low Credit Risk
ACUITE BBB SO	Moderate Safety, Moderate Credit Risk
ACUITE BB SO	Moderate Risk, Moderate Risk of Default
ACUITE B SO	High Risk, High Risk of Default
ACUITE C SO	Very High Risk, Very High Risk of Default
ACUITE D SO	Default / Expected to be in Default soon

Acuité may apply '+' (plus) or '-' (minus) signs for ratings from 'ACUITE AA SO' to 'ACUITE C SO' to reflect comparative standing within the category.

Acuité may assign rating outlooks for ratings from 'ACUITE AAA SO' to 'ACUITE B SO'.A rating outlook indicates the direction in which a rating may move over a medium-term horizon of one to two years. A rating outlook can be 'Positive', 'Stable' or 'Negative'. A 'Positive' or 'Negative' rating outlook is not necessarily a precursor of a rating change. Ratings on Ratings Watch will not carry outlooks.

For Short Term Instrument

Ratings	Interpretation
ACUITE A1 SO	Very Strong degree of Safety, Lowest Credit Risk
ACUITE A2 SO	Strong degree of Safety, Low Credit Risk
ACUITE A3 SO	Moderate degree of Safety, Higher Credit Risk as compared to instruments rated in the two higher categories
ACUITE A4 SO	Minimal degree of Safety, Very High Credit Risk
ACUITE D SO	Default / Expected to be in Default on Maturity

Acuité may apply '+' (plus) sign for ratings from 'ACUITE A1 SO' to 'ACUITE A4 SO' to reflect comparative standing within the category

For Structured Obligations, Acuité assigns suffix '(SO)' to the rating symbol. The rating suffixed by the letters (SO), indicates presence of a credit enhancement which has been factored into the rating.

For ratings under watch, Acuité assigns the suffix 'RW' to the rating symbol. Rating Watch may indicate positive, negative or developing implications for the assigned rating. 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.

Fee Structure For Bank Loan Ratings

Acuité Ratings charges fees 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 rating fees in all cases are discussed and finalized by a separate business development team who is not involved in the analytical or the rating committee process in any manner. The rating fee has no bearing on the rating assigned, or on the processes, analytical or otherwise. The analysts associated with the process are neither responsible for business development nor do they engage in any discussion over fees with existing or prospective rating clients.

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 adopted by Acuité for capital market debt instruments (covering Bonds, NCDs, Commercial Paper, Securitisation transactions) and fixed deposit programmes is as follows:

a. IRF - 0.10% of the rated amount subject to a minimum of Rs. 100,000/-.
b. ASF - 0.03% of the rated amount per annum subject to a minimum of Rs.50,000/-.

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 fee structure represents the minimum chargeable to the clients, the actual fee amounts are determined by several factors including, but not limited to, the principal amount of the bank loan / facility that is rated, number of group entities (if any), the complexity of the assignment etc.

Note:

As per Acuité's policy, fees are accepted from its clients towards rating assignments, ONLY by way of a Pay Order / Bank Draft / Cheque (payable at par) / Electronic transfer (NEFT/RTGS) favouring "Acuité Ratings & Research Limited". Acuité does not accept CASH payments from the clients for any reason whatsoever.

Acuité accepts fees towards 'initial rating fee', 'renewal rating fee', 'surveillance fee', and 'enhancement fee' only for providing rating services to its clients. Acuité does not charge a client for any rating action (such as reaffirmation of rating, upgrade of rating, downgrade of rating). There is no linkage whatsoever between the rating assigned to an instrument and the fee paid to Acuité.

Acuité does not provide any rating advisory services. In Acuité, all ratings are assigned by the 'Rating Committee' only and not by any individual. Employees or representatives of Acuité are strictly prohibited from assuring or even indicating a probable rating on a standalone basis or in connection with any existing rating given by other rating agencies.

Acuité rates all types of bank facilities. Some of them are as under:

Fund Based Facilities	Non-Fund Based Facilities
Term Loans	Buyers Credit
Cash Credit	Letter of Credit
Working Capital Demand Loans	Bank Guarantee
Pre-Shipment Credit
Post-Shipment Credit
External Commercial Borrowing