Understanding Ratings of Various Rating Agencies

 

Understanding Ratings of Various Rating Agencies ICRA INTRO: An ICRA Rating is a symbolic indicator of ICRA's current opinion on the relative capability of the corporate entity concerned to timely service debts and obligations, with reference to the instrument Rated. The Rating is based on an objective analysis of the information and clarifications obtained from the entity, as also other sources considered reliable by ICRA. The independence and professional approach of ICRA ensure reliable, consistent and unbiased Ratings. Ratings allow investors to factor credit risk in their investment decision. ICRA Rates long-term, medium-term, and short-term debt instruments. ICRA offers its Credit Rating services to a wide range of issuers including: - Manufacturing companies - Banks and financial institutions - Infrastructure sector companies - Service companies - Municipal and other local bodies - State governments - Non-banking finance companies - Small and medium sector entities LAAA The highest-credit-quality rating assigned by ICRA. The rated instrument carries the lowest credit risk  LAA The high-credit-quality rating assigned by ICRA. The rated instrument carries low credit risk.  LA The adequate-credit-quality rating assigned by ICRA. The rated instrument carries average credit risk.  MAAA The highest-credit-quality rating assigned by ICRA. The rated deposits programme carries the lowest credit risk  MAA The high-credit-quality rating assigned by ICRA. The rated deposits programme carries low credit risk.  MA The adequate-credit-quality rating assigned by ICRA. The rated deposits programme carries average credit risk.  The rating of LAA+ and MAA+ are one notch higher than LAA and MAA respectively, while LAA- and MAA- are one notch lower than LAA and MAA respectively.  CARE INTRO: CARE is an independent rating agency promoted by major banks and financial institutions in India . The three largest shareholders of CARE are IDBI Bank, Canara Bank and State Bank of India . CARE is a board managed company with eminent professionals on the board. The entire Board comprises of Independent Directors. CARE is the only rating agency in India which operates with an independent rating committee comprising of senior and reputed professionals. CARE Ratings are recognized by Government of India and regulatory agencies in India . CARE is registered with the Securities and Exchange Board of India. CARE Ratings are also recognized by RBI, NABARD, NHB and NSIC. RBI has also recognized CARE Ratings as an eligible external credit rating agency for the purpose of Basel II implementation in India  CARE AAA Instruments with this rating are considered to be of the best credit quality, offering highest safety for timely servicing of debt obligations. Such instruments carry minimal credit risk. CARE AA Instruments with this rating are considered to offer high safety for timely servicing of debt obligations. Such instruments carry very low credit risk. CARE A Instruments with this rating are considered to offer adequate safety for timely servicing of debt obligations. Such instruments carry low credit risk. As instrument characteristics or debt management capability could cover a wide range of possible attributes whereas rating is expressed only in limited number of symbols, CARE assigns '+' or '-' signs to be shown after the assigned rating (wherever necessary) to indicate the relative position within the band covered by the rating symbol.  CRISIL Intro: CRISIL Ratings is India's largest rating agency, having rated more than 11,026 debt instruments, of more than USD 454 billion (Rs.22,51,590 crores), issued by over 5716 companies. CRISIL Ratings has a 70 per cent penetration in the domestic debt market. CRISIL Ratings rates virtually every kind of organisation, including industrial companies, banks, SMEs, non-banking financial institutions, insurance providers, mutual funds, infrastructure entities, state governments, and urban local bodies. It also rates securitised paper.  FAAA ("F Triple A") Highest Safety This rating indicates that the degree of safety regarding timely payment of interest and principal is very strong. FAA ("F Double A") High Safety This rating indicates that the degree of safety regarding timely payment of interest and principal is strong. However, the relative degree of safety is not as high as for fixed deposits with 'FAAA' ratings. FA Adequate Safety This rating indicates that the degree of safety regarding timely payment of interest and principal is satisfactory. Changes in circumstances can affect such issues more than those in the higher rated categories. Fitch Intro:  The Fitch Ratings Banks Group has actively built the agency into the global leader in bank credit rating coverage. Our experienced analysts provide comprehensive, timely and transparent coverage of every major institution around the world, as well as unparalleled coverage of smaller companies. Our analysts offer a diversity of talent and backgrounds, with experience in regulatory oversight, investment banking, buy-side investing, accounting and more Fitch's credit ratings provide an opinion on the relative ability of an entity to meet financial commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterparty obligations. Credit ratings are used by investors as indications of the likelihood of receiving their money back in accordance with the terms on which they invested. Fitch's credit ratings cover the global spectrum of corporate, sovereign (including supranational and sub-national), financial, bank, insurance, municipal and other public finance entities and the securities or other obligations they issue, as well as structured finance securities backed by receivables or other financial assets. "Investment grade" ratings 'AAA' indicates relatively low to moderate credit risk

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Larsen & Toubro Finance launches Secured NCDs

 

 

Larsen & Toubro Finance launches Secured NCDs

Issue Period: August 18th, 2009– September 4th, 2009     Issue Size   The issue size would be Rs. 500 crs. with an option to retain over subscription of up to Rs. 500 crores.   About Company   L&T Finance Limited (LTF) is a subsidiary of engineering and construction giant Larsen & Toubro Limited. LTF offers a spectrum of financial products and services for trade, industry and agriculture and has evolved into a multi product finance company with a diversified corporate and retail portfolio.   Issue Details   Options I II III IV Interest Payment Quarterly Semi - annual Cumulative Semi - annual Min Application (Rs) Rs 10,000 /- (Retail) Rs 10,000 /- (Retail) Rs 10,000 /- (Retail) Rs 10,000 /- (Retail) Rs 10,100 /- (HNI) Rs 10,100 /- (HNI) Rs 10,100 /- (HNI) Rs 10,100 /- (HNI) Face Value Rs 1,000 /- Rs 1,000 /- Rs 1,000 /- Rs 1,000 /- Multiples Rs 1,000 /- Rs 1,000 /- Rs 1,000 /- Rs 1,000 /- Coupon Rate 9.51% p.a. 9.62% p.a 9.95% Compounded annually 10.24% p.a Yield on Redemption 9.85% 9.85% 9.95% 10.50% Tenure 60 months 60 months 88 months 120 months Redemption Date / Maturity Period 60 months from the deemed date of allotment. 60 months from the deemed date of allotment. 88 months from the deemed date of allotment. 120 months from the deemed date of allotment. Redemption Amount Face value plus any interest that may have accrued payable on redemption. Face value plus any interest that may have accrued payable on redemption. Rs.2,005/- per NCD Face value plus any interest that may have accrued payable on redemption.    Highlights   o        Issue Rated CARE AA+ by CARE and LAA+ by ICRA   o        Issuance and trading in demat form only   o        Security will be created for the purpose of this issue as per the Debenture Trust - cum - Mortgage Deed For details: SMS "finvest" 56070 finvest@simplytax.in

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Swine Flu – An update

 

 

About Swine Flu The H1N1 influenza/ Swine Flu is a highly contagious virus and spreads in the same manner as an ordinary cold or flu. The virus spreads through the nose or mouth when someone coughs or sneezes. However, here are a few precautions that you can take to protect yourself and your family.  Symptoms of Swine Flu Primary symptoms Secondary symptoms A sudden fever (a high body temperature of 38°C/100.4°F or above) A sudden cough Headache / Tiredness or dizziness Aching muscles / Limb or joint pain Diarrhoea or stomach upset / Loss of appetite Sore throat / Chills Runny nose / Sneezing Fast breathing or difficulty in breathing Bluish or gray skin colour Severe or persistent vomiting Preventive Measures You can reduce the risk of catching or spreading Swine Flu by: Always covering your nose and mouth with a tissue when coughing or sneezing Disposing of dirty tissues promptly and carefully Maintaining basic hygiene, for example, washing hands often with soap and warm water Making sure you have a thermometer and enough cold and cough remedies in your medicine cupboard in case you or your family are affected by Swine Flu Points to remember while wearing a mask Studies have shown that face masks seem to protect against Swine Flu N95 masks are considered helpful but there is no concrete evidence to suggest that this is a useful preventative measure The masks must be changed regularly as they don't work as well when dampened by a person's breath Focus on good hand hygiene, staying at home if feeling unwell and covering the mouth while coughing or sneezing What do you do in case you have the above symptoms? Please consult your physician before you decide to go for any medication. Post consultation, visit a Government Hospital or any approved hospital that offers complete check-up and treatment facilities for Swine Flu patients. We advise you not to try any medicines in advance. Two common anti-influenza drugs — Relenza and Tamiflu — appear equally effective in tackling the Swine Flu virus. List of Government Authorised Hospitals for treatment of Swine Flu Does Health Insurance cover Swine Flu? A Health insurance cover will help you get cashless treatment in case of hospitalization due to Swine Flu. ICICI Lombard provides coverage for hospitalization in case of Swine Flu / H1N1 Influenza under our  Family Floater Health Insurance and Health Advantage Plus insurance policies. View WHO guidelines for further information.   Disclaimer: The mailer contains only an indication of the cover offered. For complete details on coverage, terms, conditions and exclusions, please read the policy document before concluding a sale. The above mentioned contents have been provided on basis of the information available with the Company through general media and personnel from the medical field. However, please consult a Physician or Medical Practitioner for compete and exact details. Mailing Address: ICICI Lombard General Insurance Company Ltd. Zenith House, Keshavrao Khadye Marg, Mahalaxmi, Mumbai - 34. ICICI Lombard General Insurance Company Limited. Insurance is the subject matter of solicitation. IRDA Reg. No. 115 Misc 63, Misc 34E

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Gold to trade over Rs 15,000 level on growing demand

Gold to trade over Rs 15,000 level on growing demand

 

NEW DELHI: Gold prices are likely to surge further this week to rule over Rs 15,000 per 10 grams level amidst a weakening dollar and rising demand

Gold brings stability to a portfolio Gold ETFs: Safer bet in times of crisis Investing in gold a safe bet Gold: A safe option

ahead of the festival season.

On Friday, October gold on Multi Commodity Exchange ruled at Rs 14,965 per 10 grams, touching a high of Rs 15,011 per grams. While in the international market the yellow metal ruled at 958 dollars an ounce (28.34 grams).

Analysts say gold is attracting investors as they are expecting the prices to rise further.

The metal is likely to trade at Rs 15,400 per 10 grams level this week as the dollar index is indicating a slight weakness, Brokerage firm SMC Global's Rajesh Jain told PTI.

Among reasons supporting gold's rise are the growing investment in exchange traded funds or ETFs, and increased demand ahead of the festival season.

Investors returning to the market inspite of the ruling high prices will have positive impact on imports in the second half of the year, Religare Commodity's Metals and Energy In-Charge Somnath Dey said.

Gold import during the first six months of 2009 was only 51.6 tonnes compared to 139 tonnes during the same period in 2008, according to data given by the Bombay Bullion Association.

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→ Silver coins zoom to record high on festival demand

→ Diamond jewellery sales may go up to Rs 25,000 cr in 2009-10

Experts feel that high prices mainly kept the investors away from the market.

Karvy Comtrade's analyst say gold is likely to remain bullish, but it might take a slight correction and pick up again later.

Gold may find resistance at 972 dollars and support at 950 dollars in the international market. In the domestic market the precious metal is likely to find resistance at Rs 15,100 and support at Rs 14,880, he added.

Investors returning to the market inspite of the ruling high prices will have positive impact on imports in the second half of the year, Religare Commodity's Metals and Energy In-Charge Somnath Dey said.

Gold import during the first six months of 2009 was only 51.6 tonnes compared to 139 tonnes during the same period in 2008, according to data given by the Bombay Bullion Association.

Experts feel that high prices mainly kept the investors away from the market.

Karvy Comtrade's analyst say gold is likely to remain bullish, but it might take a slight correction and pick up again later.

Gold may find resistance at 972 dollars and support at 950 dollars in the international market. In the domestic market the precious metal is likely to find resistance at Rs 15,100 and support at Rs 14,880, he added.

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