CRISIL Rating
CRISIL Credit Rating Overview
CRISIL is India’s first credit rating agency that provides credit ratings to debt instruments and institutions based on parameters such as the business strengths, its market share and portfolio performance.
| CRISIL Full Form | Credit Rating Information Services of India Limited |
| CRISIL Instruments | Debt instruments and financial entities |
| Crisil Rating Parameters | Business strengths, Market share and reputation |
| CRISIL Highest Rating Scale | CRISIL AAA |
What is CRISIL Rating?
CRISIL rating is the quantified credit rating issued to every debt instrument and financial entity by CRISIL. CRISIL stands for Credit Rating Information Services of India Limited. It is India’s first credit rating agency which was pioneered in 1937 in India to serve various stakeholders such as banks, NBFCs, lenders, investors, issuers, market intermediaries PSUs, financial institutions, state governments, urban local bodies, mutual funds and manufacturing companies.
Who does the CRISIL rating cater to?
CRISIL provides quantified ratings to the entire gamut of debt instruments and financial institutions to determine creditworthiness based on parameters such as business strengths, market share and reputation. These credit ratings help the borrowers and investors to access or invest the funds with credible financiers. Below mentioned is a list of few instruments which are provided rating by the CRISIL.
| Debt instruments | Financial institutions |
| Loans | Manufacturing companies |
| Commercial papers | NBFCs |
| Non-convertible debentures | PSUs |
| Bonds | State governments |
| Mortgage-backed securities | Mutual funds |
CRISIL Rating Scales: CRISIL provides credit ratings to debt instruments and financial institutions under seven categories.
1. Long-term instruments: For long-term instruments such as bonds, debentures and loans with a maturity period exceeding one-year CRISIL credit ratings are assigned from ‘CRISIL AAA’ to ‘CRISIL D. ’CRISIL AAA credit rating is assigned to the debt instruments which have the highest safety.
| Rating | Meaning |
| CRISIL AAA | Highest safety |
| CRISIL AA | A high degree of safety |
| CRISIL A | An adequate degree of safety |
| CRISIL BBB | A moderate degree of safety |
| CRISIL BB | A moderate risk of default |
| CRISIL B | High risk of default |
| CRISIL C | Very high risk of default |
| CRISIL D | Instruments in default |
2. Short-term instruments: Short-term debt instruments include commercial paper, short-term debentures and loans within a maturity period of one year etc. CRISIL credit ratings are assigned from ‘CRISIL A1 to ‘CRISIL D’.
| Rating | Meaning |
| CRISIL A1 | Very Strong degree of safety |
| CRISIL A2 | Strong degree of safety |
| CRISIL A3 | Moderate degree of safety |
| CRISIL A4 | Minimal degree of safety |
| CRISIL D | In default |
3. Dual Ratings: Debt instruments which have an original maturity of more than one year but also have an option of put option exercisable within one year from the date of issue are assigned credit rating on both long term and short-term scale. Dual rating would be as follows CRISIL AA+/ CRISIL A1+.
4. Structured Obligations: CRISIL credit ratings assigned to structured finance instruments vary based on long-term and short-term scales. Long-term structured instruments have a maturity period exceeding one year, and short-term structured instruments mature within one year. The credit ratings range from ‘CRISIL AAA (SO)’ to ‘CRISIL D (SO)’ for the long-term instruments and ‘CRISIL A1 (SO)’ to ‘CRISIL D (SO)’ on the short-term instruments.
5. Credit Enhancement Ratings: Debt instruments that are backed by credit enhancement of third parties are assigned credit ratings under this category based on the maturity period. The credit ratings range from ‘CRISIL AAA (CE)’ to ‘CRISIL D (CE)’ on the long-term scale and ‘CRISIL A1 (CE)’ to ‘CRISIL D (CE)’ on the short-term rating scale as in long-term and short-term debt instruments.
6. Fixed deposits: FAAA is the highest credit rating provided for the fixed deposits indicating that the financier has the lowest risk of turning into default.
| Rating | Meaning |
| FAAA | Highest safety |
| FAA | High safety |
| FA | Adequate safety |
| FB | Inadequate safety |
| FC | High risk |
| FD | Default |
| NM | Not Meaningful |
7. Corporate Credit Rating: CRISIL assigns credit ratings to companies based on the company strength and how it handles debt obligations.
| Rating | Meaning |
| CCR AAA | Highest degree of strength |
| CCR AA | High degree of strength |
| CCR A | Adequate degree of strength |
| CCR BBB | Moderate degree of strength |
| CCR BB | Inadequate degree of strength |
| CCR B | High risk |
| CCR C | Substantial risk |
| CCR D | In default |
| CCR SD | Specific Default |
Credit Rating Scales for specific Debt Instruments
What is the role of CRISIL ratings?
CRISIL ratings help the investors and borrowers to make smarter financial decisions by analysing the creditworthiness of debt instruments and financial instruments.
Role of CRISIL ratings for issuers and borrowers: Borrowers and issuers can use the CRISIL ratings to ease their access to various alternative options and also optimise the cost of funds of different debt instruments of the financial institutions.
How do CRISIL Rating affect Depositors?
CRISIL credit ratings provided by CRISIL assess the creditworthiness of any financial institution. Before making any decision about investment in any institutions, you can make an internal evaluation of various institutions. For instance, if you have decided to invest in fixed deposits, the criteria to choose about the lending institution would be a higher rate of interest along with the attractive returns. However, these investment instruments are subject to market risks and not backed by the government. It is thus essential that the creditworthiness or CRISIL rating of the instruments and financial institutions is determined before making any decision. Also, you can know about the attractive offers of the different players in the market using these credit ratings.
FAQs
✅What does CRISIL rating mean?
CRISIL ratings provided by global agency CRISIL represents the creditworthiness of debt instruments and financial institutions. These credit ratings help the borrowers and investors to access the right financier which has the least credit risk of turning into default.
✅How does CRISIL rate a company?
CRISIL ranking is calculated based on the degree of strength of the company concerning honouring debt obligations. The ratings are based on parameters such as the business strengths, its market share and portfolio performance. A 'CCR AAA' indicates the highest strength of a company with the lowest risk of turning to defaults.
✅What does the FAAA rating mean?
FAAA in CRISIL rating means that the fixed deposits are of the highest safety and there is the lowest risk of default.
✅Is Crisil Rating reliable?
Yes, these ratings are provided by the credible global analytical agency, Credit Rating Information Services of India Limited by analysing various debt instruments and financial institutions.
✅How do I find my CRISIL rating?
You can find the CRISIL rating of any debt instrument or financial instrument on the official website of CRISIL.
- 2020-09-17 : ICICI Bank changed its Fixed deposit rates
ICICI Bank changed its FD rates effective from 11 September 2020. The FD rate for 7 to 29 days is 2.50%, the rate for 30 to 90 days is 3%, and it stands at 3.50% for 91 to 120 days. Further, the fixed deposit rate for 121 to 184 days is 3.50%, for 185 to less than 1 year it is 4.40% and for 1 year to less than 18 months it is 5%. The rate for 18 months to two years is 5.10%, and for 2 years 1 day to 3 years is 5.15%. The rate for 3 year one day to 5 years is 5.35% and it stands at5.50% for 5 years one day to 10 years. - 2020-09-17 : Punjab National Bank changed FD rates
Punjab National Bank revised its FD rates effective from 1 September 2020. The FD rates for 7 to 45 days is 3%, for 46 to 90 days it is 3.25 and for 91 to 270 days it is 4.40%. The rate for long tenors of 271 days to less than one year is 4.50% and the rate for one year to up to 3 years is 5.25%. Further, the FD rate for above 3 years to 10 years is 5.30%. - 2020-09-17 : SBI changed its Fixed deposit rates
State Bank of India changed its fixed deposit rate. The FD rate for 7 to 45 days is 2.90%, it is 3.90% for 46 to 179 days and 4.40% for 180 days to 1 year. Further, the fixed deposit rate for one year to less than three years is 5.10%, and for three years to less than five years it is 5.30%. The rate for 5 years upto ten years is 5.40%. The revised rates will be effective from 10 September 2020. - 2020-09-15 : SBI special FD scheme for senior citizens extended till December 31
SBI special fixed deposit scheme for senior citizens has been extended. The scheme was launched to provide a higher interest rate to senior citizens in the current falling interest rate scenario. The special FD scheme for senior citizens will be available till year December 31. - 2020-08-27 : HDFC Bank revised its FD rates
With effect from 25 August 2020, HDFC Bank revised its FD rates. The FD rates for 7 to 29 days is 2.50%, and it is 3% for 30 to 90 days. The fixed deposit rates for 91 days to six months is 3.50%, for six months one day to one year is 4.40%. Further, the FD rate for one year one day to two years is 5.10%, and it is 5.15% for two years one day to three years. FD rates for three years one day to ten years stands at 5.30%.