What Does CRISIL Rating Mean For Investors?

CRISIL or Credit Rating Information Services of India Limited is a global analytical company which provides research, ratings, risk, and policy advisory services. Its rating outlook indicates the direction in which a rating may move over a medium horizon of one or two years. It can be either positive, negative or stable. There is another rating i.e ICRA which also measures the ratings, risk, and policy advisory service.

Its rating scale is as follows -

• CRISIL AAA (highest safety) - investments provided this rating have the highest degree of safety regarding timely service of financial obligations. They carry the lowest credit risk.
• CRISIL AA (high safety) - investments provided this rating have the high degree of safety regarding timely service of financial obligations. They carry the very low credit risk.
• CRISIL A (adequate safety) - investments provided this rating have an adequate degree of safety regarding timely service of financial obligations. They carry low credit risk.

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• CRISIL BBB (moderate safety) - investments provided this rating have a moderate degree of safety regarding timely service of financial obligations.
• CRISIL B (high risk) - investments provided this rating have a high risk of default regarding timely service of financial obligations.
• CRISIL C (very high risk) - investments provided this rating have the very high risk of default regarding timely service of financial obligations.
• CRISIL D (default) - investments provided this rating are either in default or at risk of default soon.

Investment instruments such as fixed deposit having ICRA’s MAAA (stable) rating and CRISIL’s FAAA/ Stable rating. This means your investments are never at risk. You can earn a substantial income on the deposit. 

Also, Read Related Article: How CRISIL can help you to take better financial decisions?