1. Check whether your company is likely to issue one or any combination of the following :
(a) commercial paper
(b) fixed deposit
(c) non-convertible debentures
(d) preference shares
(e) fully convertible debentures to be converted before eighteen months of the issue.
(f) partly convertible debentures maturing before eighteen months of the issue.
2. If yes, then make an application to one of the following four credit rating agencies in the prescribed format supplied by the concerned agency to whom the application is made :
(a) Credit rating information services of India Limited (CRISIL)
(b) Investment Information and Credit Rating Agency of India Limited (ICRA)
(c) Credit Analysis and Research Limited (CARE)
(d) FITCH Credit Ratings India Private Limited
(e) Brickwork Ratings
(f) SME Rating Agency of India Ltd
3. The said application should be accompanied by the required fee as prescribed by the concerned credit rating agency either by way of cheque or demand draft.
4. Before making the application to the credit rating agency do the following :
(a) pass a Board Resolution allowing you to make an application to the credit rating agency and enter into a written agreement.
(b) pass a Board Resolution authorizing one of the company directors or secretary of the company to make the application and to do any act or deed as may be necessary to get the credit rating certificate from the credit rating agency.
(g) your company should own to get a rating from at least two separate rating companies for any matter of debt securities whose size is equal to or exceeds, Rs.100 crores.
Furnish further information if asked by the analysts of the concerned credit rating agency after perusal of the application submitted by you.
Allow to have an inspection of your company’s books and records by the analysts of the concerned credit rating agency if they require to do so before giving the rating.
If the same case, credit rating is mandatory, but one can also make an application to any one of the credit rating agencies for credit assessment of companies or undertakings intending to obtain financial assistance from Commercial Banks, Financial Institution, Investment Institution, Factoring Companies and Financial Service Companies, as such credit rating helps the lender to judge the capability of the companies undertaking to repay the interest and principal amount of loan provided.
An application can be made to one of the credit rating agencies for general assessment by banks and other potential users such as non-banking, non-financial agencies for the purposes of merger, amalgamation, joint venture, acquisition, collaboration and factoring of debts.
Ensure that credit rating agency to whom your company has applied for credit rating of any one or more of your securities or instrument is holding a valid certificate of registration from SEBI.
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