Press release from Business Wire India
Source: Brickwork Ratings
Thursday, December 24, 2009 07:41 PM IST (02:11 PM GMT)
Editors: General: Consumer interest, Economy; Business: Accounting & management consultancy services, Advertising, PR & marketing, Banking & financial services, Business services, Financial Analyst, Stock exchanges
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Brickwork Ratings - A Credit Rating Agency Adopts Standardization of Rating Symbols
Bangalore, Karnataka, India, Thursday, December 24, 2009 -- (Business Wire India) -- Brickwork Ratings is a Bangalore based Credit Rating Agency registered under SEBI (Credit Rating Agencies) Regulations, 1999. It was started with the mission of helping investors make informed investment decisions suitable for their risk profile. Brickwork Ratings focuses on Indian investment scene and is completely in tune with Indian business, Socio-Political-Economic developments, Market Psychology and Indian investor risk profile. The ratings penetration in the Indian market is still one of the lowest and Brickwork Ratings feels the investors would require more of the Right Information before investing. It is the therefore committed to contribute to the development of a vibrant, integrated capital market by setting the highest standards of credible independent analysis and opinion to enable informed financial decisions.
Brickwork Ratings offers Long/Medium term Ratings for Debt instruments like: Bonds, NCDs, Certificate of Deposits, Structured Obligations, Convertible Preference Shares, Redeemable Preference shares, all with maturity exceeding one year. It also offers Short Term Debt instruments rating with original maturity up to one year, Issuer Rating, IPO Grading, SME Rating, Corporate Governance Rating, Mutual Fund Rating and Security Receipts Rating.
Brickwork Ratings' Rating Scales shall be as follows:
Investment Grade Ratings:
BWR AAA (BWR Triple A): Instruments with 'AAA' rating are considered to offer the Best credit quality, in terms of timely servicing of debt obligations.
BWR AA (BWR Double A): Instruments with 'AA' rating are considered to offer High credit quality.
BWR A: Instruments with 'A' rating are considered to offer Adequate credit quality.
BWR BBB (BWR Triple B): Instruments with this rating are considered to offer Moderate credit quality.
Speculative Grade:
BWR BB (BWR Double B): Instruments with this rating are considered to offer Inadequate credit quality.
BWR B: Instruments with this rating are considered to offer Low credit quality.
BWR C: Instruments with this rating are considered to offer Very Low credit quality.
BWR D: Instruments with this rating are in Default or expected to Default.
{"+" (plus) "-" (minus)} modifiers are used with BWR AA to BWR C. The modifiers reflect the comparative standing for the same rating category.
Short Term Instruments Rating
The 'Short Term debt instruments' with original maturity up to one year.
BWR P1: Instruments with this rating are considered to offer Excellent credit quality
BWR P2: Instruments with this rating are considered to offer High credit quality
BWR P3: Instruments with this rating are considered to offer Moderate credit quality
BWR P4: Instruments with this rating are considered to offer Low credit quality
BWR P5: Instruments with this rating are in Default or expected to Default
The modifier "+" is used only from P1 to P3 to reflect comparative higher stand within the categories.
Issuer Rating
BWR AAA (BWR Triple A): Issuer with 'AAA' rating is considered to offer the BEST credit worthiness.
BWR AA (BWR Double A): Issuer with 'AA' rating is considered to offer High credit worthiness.
BWR A: Issuer with 'A' rating is considered to offer Adequate credit worthiness.
BWR BBB (BWR Triple B): Issuer with this rating is considered to offer Moderate credit worthiness.
BWR BB (BWR Double B): Issuer with this rating is considered to offer Inadequate credit worthiness.
BWR B: Issuer with this rating is considered to offer Low credit worthiness.
BWR C: Issuer with this rating is considered to offer Very Low credit worthiness.
BWR D: Issuer with this rating is in Default or expected to Default.
IPO Grading
BWR IPO Grade 5: Strong fundamentals
BWR IPO Grade 4: Above-average fundamentals
BWR IPO Grade 3: Average fundamentals
BWR IPO Grade 2: Below-average fundamentals
BWR IPO Grade 1: Poor fundamentals
Corporate Governance
BWR CG 1+: Quality of Corporate Governance is The BEST
BWR CG 1: Quality of Corporate Governance is EXCELLENT
BWR CG 2: Quality of Corporate Governance is HIGH
BWR CG 3: Quality of Corporate Governance is ADEQUATE
BWR CG 4: Quality of Corporate Governance is MODERATE
BWR CG 5: Quality of Corporate Governance is INADEQUATE
BWR CG 6: Quality of Corporate Governance is LOW
BWR CG 7: Quality of Corporate Governance is VERY LOW
BWR CG 8: Quality of Corporate Governance is The LOWEST
SME rating
BWR aaa (BWR Triple a): SME with 'aaa' rating is considered to offer the Best credit worthiness in relation to other SMEs.
BWR aa (BWR Double a): SME with 'aa' rating is considered to offer High credit worthiness in relation to other SMEs.
BWR a: SME with 'a' rating is considered to offer Adequate credit worthiness in relation to other SMEs.
BWR bbb (BWR Triple b): SME with 'bbb' rating is considered to offer Moderate credit worthiness in relation to other SMEs.
BWR bb (BWR Double b): SME with 'bb' rating is considered to offer Inadequate credit worthiness in relation to other SMEs.
BWR b: SME with 'b' rating is considered to offer Low credit worthiness in relation to other SMEs.
BWR c: SME with 'c' rating is considered to offer Very Low credit worthiness in relation to other SMEs.
BWR d: SME with 'd' rating is in Default or expected to Default
Security Receipts Ratings
BW RR1+: Recovery Value of the Underlying Assets is greater than 150% of SR Face Value.
BW RR1: Recovery Value of the Underlying Assets is in the range of 100% - 150%
of SR Face Value.
BW RR2: Recovery Value of the Underlying Assets is in the range of 75% - 100%
of SR Face Value.
BW RR3: Recovery Value of the Underlying Assets is in the range of 50% - 75%
of SR Face Value.
BW RR4: Recovery Value of the Underlying Assets is in the range of 25% - 50%
of SR Face Value.
BW RR5: Recovery Value of the Underlying Assets is less than 25% of SR Face Value.
Mutual Fund
BWR MF AAA: BEST credit quality of underlying Debt portfolio
BWR MF AA: HIGH credit quality of underlying Debt portfolio
BWR MF A: ADEQUATE credit quality of underlying Debt portfolio
BWR MF BBB: MODERATE credit quality of underlying Debt portfolio
BWR MF BB: INADEQUATE credit quality of underlying Debt portfolio
BWR MF B: LOW credit quality of underlying Debt portfolio
BWR MF C: VERY LOW credit quality of underlying Debt portfolio
Real Estate Project
BWR RP 1+: BEST project implementation
BWR RP 1: EXCELLENT project implementation
BWR RP 2: ADEQUATE project implementation
BWR RP 3: MODERATE project implementation
BWR RP 4: INADEQUATE project implementation
BWR RP 5: LOW project implementation
Real Estate Developer
BWR RD 1+: BEST project implementation capability
BWR RD 1: EXCELLENT project implementation capability
BWR RD 2: ADEQUATE project implementation capability
BWR RD 3: MODERATE project implementation capability
BWR RD 4: INADEQUATE project implementation capability
BWR RD 5: LOW project implementation capability
Till now, Brickwork Ratings had a unique BWR AAA+ rating which was the highest in its Rating Scale. However, as advised by SEBI that they are in the process of bringing in uniformity and standardization of rating symbols across the Rating Industry, Brickwork Ratings has merged BWR AAA+ and BWR AAA ratings into one rating category called BWR AAA (Pronounced BWR triple A). BWR AAA+ category is withdrawn. This reclassification is given immediate effect and does not amount to downgrade. Now on, 'BWR AAA' is the highest rating in Brickwork Ratings scale and it stands for an instrument that is considered to offer the BEST credit quality in terms of timely servicing of debt obligations. Accordingly, reclassification of rating as 'BWR AAA' has been given effect to in all applicable cases under intimation to the respective clients.
Brickwork Ratings is committed to financial literacy. In order to increase public awareness in issues related to Credit Rating, Brickwork Ratings has been regularly conducting programs for corporate executives, Chartered Accountants, Industry and Trading house representatives, Bankers etc., covering various topics ranging from Term lending & project Appraisal, Basel II, Forex Hedging, Export Finance, Excel in Financial Modeling to Finance for Non-Finance executives. Besides these, it has already successfully conducted two programs titled 'Derivatives Demystified'.
As a matter of Corporate Policy, Brickwork Ratings has educational programs on an on going basis for the benefit of various classes of investors and public. The revised Ratings Scale and Rationales have been updated in the website.
CONTACT DETAILS
Anitha G, Brickwork Ratings, 1-860-425-2742, media@brickworkratings.com
KEYWORDS
CONSUMER, ECONOMY, CONSULTANCY SERVICES, MARKETING, BANKING, BUSINESS SERVICES, Financial Analyst, STOCK EXCHANGES
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