Rating Methodology :

CRAB has developed a highly standardised rating methodology for different instruments and
entities. The methodologies have been developed considering all the relevant factors impacting on the future cash generation capacity of the issuers.

These factors include: industry characteristics, competitive position of the issuer, operational
efficiency, management quality, commitment to new projects and other associate companies and future funding policies of the issuer.

A detailed analysis of the past financial statements is made to assess the actual business performance.

Analysis considering the estimated future earnings under various sensitivity scenarios are drawn up and evaluated against the future obligations that require servicing over the tenure of the instrument being rated.

CRAB rating methodology intends to assess the relative comfort level of the issuers to service the obligations and this is reflected in the rating of a debt instrument.

In case of equity instruments the rating reflects the future earning capabilities with reference to the resilience to perform in adverse situations.