care presentation 2009
TRANSCRIPT
8/6/2019 Care Presentation 2009
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About CARE
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Presentation Structure
� About CARE
� Range of rating & grading services
� CARE¶s Credit Rating Experience & International Perspective
� Why CARE?
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Our Services
� Credit Rating
� Research & Information Services
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Range of Rating & Grading Services
Banks and FI ratings
Sub-sovereign ratings
Structured Finance Ratings
Insurance/ CPA ratings
Infrastructure ratings
Corporate Governance ratings
Corporate ratings
Services
Construction GradingGrading of MTI
Fund credit Quality rating
SME/SSI ratingsIPO Grading
Issuer Rating
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Why CARE?
� Quality of Ratings
� Independent & Renowned External Rating Committee
� Comparable Transition Matrix
� Impressive Track Record of more than 15 years
� Approved by RBI/SEBI/Other regulators
� Ratings widely accepted among market participants
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� Strong Rating Practice
� Wide array of rating products
� Leader in bank ratings
� Leader in sub-sovereign ratings
� Strong industry exposure
� Developing rating methodologies for new segments like Cooperatives,
Service sector, trading etc
Why CARE?
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� Capability
� Very critical considering the volume of cases
� Highest number of ratings within a shortest period of time
� Wide network of offices in all major metros
� Capable team of close to 100 analysts
� Fully aware of resource requirements
� Planning for productivity improvements/workflow modifications
Why CARE?
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CARE¶s Credit Rating Experience & International Perspective
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Ratings ± The International Perspective
� CARE has all along built its rating methodologies in congruence
with international best practices in the sector.
� CARE constantly tracks international developments in rating
analytics and research and incorporates the latest tools and
techniques of analysis in its methodologies.� As a founder member of ACRAA, CARE is regularly in dialogue
with international rating agencies to understand the latest
developments in the field of ratings.
� CARE analysts regularly attend international training
conferences on ratings / research to assimilate and incorporate the
best practices in our ratings.
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Credit Rating Process
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Credit Ratings
Methodology
Business
Risk Profile
Analysis
Financial
Risk Profile
Analysis
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Business
Risk
Country
Risk
Company
Position
Industry
FactorsProfitability/ Peer Group
Comparisons
� Political
� Economic
� Industry ± Specific factors� Foreign exchange
� Industry Trends
� Industry Structure
� Market Size� Growth Potential
� Cyclicality
� Bases of Competition
� Changing Technology
� Operating Risk
�Regulatory
Environment
� Competitive Factors� Market position
� Keys to Success
� Size
� Diversification
� Management
� Validation of ³Company
Position´
� Trends
� Quality of Earnings& Analytical adjustments
� Peer Group Comparisons
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Financial
Risk
Accounting
Cash Flow
Adequacy
GovernanceRisk
Liquidity /Short-term
Factors
� Accounting Regime
� Reporting & Disclosure� Analytical adjustments
� Ownership
� Board of directors� Management practices
� Financial Strategy
� Risk Tolerance
� Accounting Practices
� Internal controls
� Focus on debtservice capability
� Analytical distinctions with
profitability
� Cash flow measures /
� ratios
� Operating sources & uses
Of liquidity
� Other potential calls on
Liquidity� Debt Characteristics
� Bank credit facilities