Más contenido relacionado La actualidad más candente (20) Similar a SME Ratings Overview (20) SME Ratings Overview1. CRISIL SME Ratings – An Overview
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2. About CRISIL SME Ratings
CRISIL SME Rating indicates the SME's performance capability and financial
strength. CRISIL SME Ratings are entity-specific ratings, unlike credit ratings,
which are debt-obligation-specific.
CRISIL SME Rating reflects the level of creditworthiness of the SME, adjudged in
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relation to other SMEs.
3. Highlights of CRISIL SME Ratings
Entity rating: SME Ratings are entity specific
Eligibility: All types of business enterprises, including public and private limited
companies, cooperative societies, partnership firms, and sole proprietorships, are
eligible for CRISIL SME Ratings. Registration as a micro and small enterprise is
not required, as subsidy support from the government is not available for these
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ratings.
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Surveillance based on specific requirement: A CRISIL SME rating is valid for
one year from the date of the SME report issued by CRISIL, provided no
significant changes/events occur during this period that could materially affect the
business or financial parameters of the organisation. SMEs are encouraged to
obtain rating reviews periodically, and CRISIL carries out reviews whenever
requested by the SME or the lender.
4. CRISIL SME Ratings Product Offering
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5. Four key features of CRISIL SME ratings
1. Affordability
MSMEs can avail of a rating for nominal fees
Government subsidises 75% of the rating fee
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3. Simple one-time rating process
6. Innovation in Product Design: Devising a Separate Scale
Simple one-time rating process
Information requirement simplified
Greater differentiation between
stronger and weaker MSMEs
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Unique two dimensional scale
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to evaluate
– Performance capability
(Business strength)
– Financial strength
7. Rating Scales for SME Ratings
SME Ratings uses a different scale than Bond scale ratings
– Helps in peer comparisons
SME Rating Scale
Rating Definition
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SME 1 Highest
SME 2 High
SME 3 Above Average
SME 4 Average
SME 5 Below Average
SE 2B stands for High Performance SME 6 Inadequate
Capability and Moderate Financial
SME 7 Poor
Strength
SME 8 Default
8. Rating Methodology for SME ratings
BUSINESS RISK
Performance
Capability
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Rating
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MANAGEMENT OVERALL
RISK CREDIT RISK
Financial
Strength FINANCIAL RISK PROJECT
Rating RISK
9. What is a 1 performance capability rating?
Performance rating of 1:
– Entities rated 1 have a strong and mature business risk profile
– Customer relationships are strong
– Customer profile typically comprises strong entities
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– Products of such entities have diverse end-user industries and thereby, the customer,
and geographic concentration levels are also very low
– Supplier relationships are also well maintained and such entities effectively manage their
raw material sourcing
– Managements of such entities are usually extremely dynamic and have been
demonstrated an ability to grow the business well
– A common thread across 1 rated entities, is the organizational structure and processes;
these entities usually have a professional and experienced second tier management that
has decision making capability and authority
11. Detailed Rating Report
Designed to facilitate appraisal by banks
CONTENTS
• NSIC-CRISIL PERFORMANCE AND CREDIT RATING GRID
• FACT SHEET
• STRENGTH AND RISK FACTORS
• MANAGEMENT PROFILE
• FUTURE PLANS
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• OWNERSHIP PATTERN
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• MANUFACTURING FACILITIES
• BUSINESS PROFILE
• PRODUCT PROFILE
• CAPACITY UTILISATION
• SUPPLIER INFORMATION
• CUSTOMER INFORMATION
• ORDERS IN HAND
• MARKETING ARRANGEMENTS
• OTHER INFORMATION
• BANK AND INSURANCE DETAILS
• FINANCIAL PERFORMANCE
• PROFIT AND LOSS ACCOUNT
• GRAPHS
• BALANCE SHEET
• KEY RATIOS
• SITE VISIT INFORMATION
• PROMOTERS’ DETAILS
12. Detailed Rating Report
The report can be utilized for:
– Negotiating better interest rates from banks
– Applying for fresh loans or enhancement of limits with banks
– Entering into joint ventures, new business relationships with other companies
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– Self-analysis and improving the working of the company
– Creating new export potential and also for expanding current export market
– Applying for new projects or contracts
13. CRISIL SME Rating Fees
Companies under operation:
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* Special Concessional Fees are applicable for CRISIL's partner MoU Bank customers and Industry
Association members. The fees mentioned above are inclusive of all expenses CRISIL will incur in
connection with the exercise. Please get in touch with CRISIL representatives for further details on
Concessional fees
14. CRISIL SME Rating Fees
Units with green-field projects:
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* Note: Companies under operation refer to SSIs / SMEs with audited results of one complete
year of operations.
#: Concessional Fees are applicable for CRISIL's partner MoU Bank customers and Industry
Association members. The fees mentioned above are inclusive of all expenses CRISIL will incur
in connection with the exercise. Please get in touch with CRISIL representatives for further
details on Concessional fees.
15. Time to get an SME Rating for your business
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Now your business too can benefit by getting an SME Rating from CRISIL
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If you are interested, click on the link below:
http://crisil.com/ratings/interested-sme-ratings.html
16. About us
CRISIL Limited
CRISIL is a global analytical company providing ratings, research, and risk and policy advisory
services. We are India's leading ratings agency. We are also the foremost provider of high-end
research to the world's largest banks and leading corporations.
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.
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