For Lenders, a CRAB SME Rating would
• Provide an objective, independent and reliable opinion on credit quality
• Serve as an additional input in the credit decision making process and leveraging their risks
• Assist in risk pricing and capital allocation
• Facilitate portfolio management and monitoring
• Know the risk of its clients
• Fill the credit information gap
For the rated SME, a CRAB SME Rating may help to
• Improve the comfort level with prospective/existing lenders
• Negotiate better terms on the basis of the credit quality reflected by the Rating
• Facilitate prompt credit decisions from lenders on proposals of rated units
• An independent, trusted third party opinion on capabilities and credit worthiness of SME
• Enable SME to ascertain the strengths and weaknesses of their existing operations and take corrective measures
to enhance their organizational strength
• Project a better image to prospective/existing trade partners
• Good rating may be a Collateral for SME Unit to avail banking facilities
• Good rated units could get credit at concessional rates and preferential treatment in terms and conditions from Banks/FIs
