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Process

We believe in a simple and straightforward process to ensure your satisfaction and a smooth experience with us.

Steps involved in the

Credit Rating Process at ICRA LLC

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Initial Document Collection And Screening

Invoice And Payment Collection

ICRA Rating Initiation

Rating Committee Approval

Sharing The Rating Report And Certificate

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Initial Document Collection And Screening

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Invoice And Payment Collection

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ICRA Rating Initiation

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Rating Committee Approval

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Sharing The Rating Report And Certificate

A – Receiving a Formal Request From the Client
The credit rating process begins when the issuer (who wants to obtain a credit rating) submits a formal request for credit rating to ICRA LLC along with necessary documents such as a Trade License/Certificate of Incorporation, audited financials of the company, etc. Upon acceptance of the request by ICRA, an agreement is made between the issuer company and ICRA LLC, and the customer will pay the required fee to ICRA.

B – Assigning to Credit Risk Team
In the second step, ICRA assigns the tasks of credit rating to the Credit Risk team, who is responsible for rating projects/assignments and possesses expertise in the relevant business area.

C – Obtaining Financial Information
The Credit Risk team will collect all necessary client-related financial statements and other relevant information from the given documents.

D – Research & Financial Statement Analysis
In this step, the Credit Risk team researches the Client’s operations, verifies KYC documents, reviews the credit repayment history as per the provided documents, and analyzes financial statements and cash flow projections. The credit risk team may communicate with the Client to better understand the business model and future prospects and may request additional documents and information whenever necessary.

E – Discussion Meeting
When all the analysis has been done, the Credit Risk team will discuss the findings with the Board of Governors/Rating Committee, comprising the senior management of ICRA LLC. All the issues affecting the company are identified. An opinion on the rating is also formed, and the results of the team’s analysis are finally presented to the Board of Governors/Rating Committee.

F – Rating Committee Meeting
This final meeting serves as the ultimate authority for assigning ratings, marking the conclusion of the Credit Risk team’s work. The final authority verifies facts, and findings, and considers political, social, and other factors. Following a thorough review and consideration of all results, facts, and additional information, ICRA LLC assigns the official ICRA Credit Rating.

G – Communication of Decision
The assigned rating grade is communicated to the Client along with reasons or rationale supporting the credit rating decision. Credit ratings that are not accepted are either rejected or reviewed in light of additional facts provided by the Client.

Rating Grades

and their meaning

ICRA will adopt the following rating scales while assigning the final rating to commercial entities.

Category Scale Definition
Extremely Low Credit Risk

AAA

The entity is exceptionally stable and strong, fully capable of meeting its financial commitments.
There is a minimal to zero risk of being adversely affected by foreseeable events.
Very Low Credit Risk
AA

The entity is in a very stable and strong position to fulfill its financial commitments.
There is a low risk of being adversely affected by foreseeable events.
Low Credit Risk
A

The entity is in a stable and strong position to fulfill its financial commitments.
There is a marginal risk of being adversely affected by foreseeable events.
Moderate Credit Risk
BBB

The entity has a controllable risk level to fulfill its financial commitments.
There is a moderate risk of being adversely affected by foreseeable events.
Elevated Credit Risk
BB

The entity has a considerable risk level to fulfill its financial commitments.
There is a considerable risk of being adversely affected by foreseeable events.
Substantial Credit Risk
B

The entity has a high-risk level of fulfilling its financial commitments.
There is a high risk of being adversely affected by foreseeable events.
Very High Credit Risk
CCC

The entity is in a doubtful position to fulfill its financial commitments.
There is a significantly high risk of being adversely affected by foreseeable events.
Extremely High Credit Risk
CC

The entity is in a highly unlikely position to fulfill its financial commitments.
The entity has a high vulnerability to being adversely affected by foreseeable events.
On the Verge of Default
C

The entity is incapable of fulfilling its financial commitments and is on the verge of default.
The continuity of the business is highly doubtful.

Default Entity
D

The entity is already defaulted on or in the process of bankruptcy filing, liquidation, or winding up procedures.

No Rating Assigned
NRA

A rating has not been assigned due to insufficient information, legal or regulatory requirements, a lack of reliability of information, or a new or unique entity structure.

Complete Documents

Required for Assessment

KYC Documents

  • Trade License / Certificate of Incorporation / Business License

 

  • Memorandum / Articles of Association

 

  • Latest extract from online domains

 

  • Good standing certificate for the company from a Local Lawyer in their country

 

  • Copies of passports for all directors and shareholders

 

  • Address confirmation for all shareholders and directors (Utility Bill or Lease Agreement)

 

  • Address confirmation for company (Utility Bill or Lease Agreement)

 

  • Passport-size photos for all shareholders

 

  • Credit Bureau Report of the company and shareholders

Financial Documents

  • Audited Financials (Minimum two years)
 
  • Latest Bank Statements of the Company (Minimum six months)
 
  • Complete Business Profile
 
  • Future Business Prospects & Financial Projections

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