Corporate Rating Scales and Definitions – Long Term
| RATING | DEFINITION |
| AAA Triple A | Companies rated in this category have extremely strong capacity to meet financial commitments. These companies are judged to be of the highest quality, with minimal credit risk. |
| AA1, AA2, AA3 Double A | Companies rated in this category have very strong capacity to meet financial commitments. These companies are judged to be of very high quality, subject to very low credit risk. |
| A1, A2, A3 Single A | Companies rated in this category have strong capacity to meet financial commitments, but are susceptible to the adverse effects of changes in circumstances and economic conditions. These companies are judged to be of high quality, subject to low credit risk. |
| BBB1, BBB2, BBB3 Triple B | Companies rated in this category have adequate capacity to meet financial commitments but more susceptible to adverse economic conditions or changing circumstances. These companies are subject to moderate credit risk. Such companies possess certain speculative characteristics. |
| BB1, BB2, BB3 Double B | Companies rated in this category have inadequate capacity to meet financial commitments. Have major ongoing uncertainties and exposure to adverse business, financial, or economic conditions. These companies have speculative elements, subject to substantial credit risk. |
| B1, B2, B3 Single B | Companies rated in this category have weak capacity to meet financial commitments. These companies have speculative elements, subject to high credit risk. |
| CCC1, CCC2, CCC3 Triple C | Companies rated in this category have very weak capacity to meet financial obligations. These companies have very weak standing and are subject to very high credit risk. |
| CC Double C | Companies rated in this category have extremely weak capacity to meet financial obligations. These companies are highly speculative and are likely in, or very near, default, with some prospect of recovery of principal and interest. |
| C Single C | Companies rated in this category are highly vulnerable to non-payment, have payment arrearages allowed by the terms of the documents, or subject of bankruptcy petition, but have not experienced a payment default. Payments may have been suspended in accordance with the instrument’s terms. These companies are typically in default, with little prospect for recovery of principal or interest. |
| D (Default) | D rating will also be used upon the filing of a bankruptcy petition or similar action if payments on an obligation are jeopardized. |
*Note: CRAB appends numerical modifiers 1, 2, and 3 to each generic rating classification from AA through CCC. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category.
Loan/Facilities Rating Scales and Definitions – Long Term
| RATING | DEFINITION |
| AAA (Lr) (Triple A) Highest Safety | Loans/facilities rated AAA (Lr) are judged to offer the highest degree of safety, with regard to timely payment of financial obligations. Any adverse changes in circumstances are unlikely to affect the payments on the loan facility. |
| AA1 (Lr), AA2 (Lr), AA3 (Lr) (Double A) High Safety | Loans/facilities rated AA (Lr) are judged to offer a high degree of safety, with regard to timely payment of financial obligations. They differ only marginally in safety from AAA (Lr) rated facilities. |
| A1 (Lr), A2 (Lr), A3 (Lr) Adequate Safety | Loan/facilities rated A (Lr) are judged to offer an adequate degree of safety, with regard to timely payment of financial obligations. However, changes in circumstances can adversely affect such issues more than those in the higher rating categories. |
| BBB1 (Lr), BBB2 (Lr), BBB3 (Lr) (Triple B) Moderate Safety | Loans/facilities rated BBB (Lr) are judged to offer moderate safety, with regard to timely payment of financial obligations for the present; however, changing circumstances are more likely to lead to a weakened capacity to pay interest and repay principal than for issues in higher rating categories. |
| BB1 (Lr), BB2 (Lr), BB3 (Lr) (Double B) Inadequate Safety | Loans/facilities rated BB (Lr) are judged to carry inadequate safety, with regard to timely payment of financial obligations; they are less likely to default in the immediate future than instruments in lower rating categories, but an adverse change in circumstances could lead to inadequate capacity to make payment on financial obligations. |
| B1 (Lr), B2 (Lr), B3 (Lr) High Risk | Loans/facilities rated B (Lr) are judged to have high risk of default; while currently financial obligations are met, adverse business or economic conditions would lead to lack of ability or willingness to pay interest or principal. |
| CCC1 (Lr), CCC2 (Lr), CCC3 (Lr) Very High Risk | Loans/facilities rated CCC (Lr) are judged to have factors present that make them very highly vulnerable to default; timely payment of financial obligations is possible only if favorable circumstances continue. |
| CC (Lr) Extremely High Risk | Loans/facilities rated CC (Lr) are judged to be extremely vulnerable to default; timely payment of financial obligations is possible only through external support. |
| C (Lr) Near to Default | Loans/facilities rated C (Lr) are currently highly vulnerable to non-payment, having obligations with payment arrearages allowed by the terms of the documents, or obligations that are subject of a bankruptcy petition or similar action but have not experienced a payment default. C is typically in default, with little prospect for recovery of principal or interest. C (Lr) are typically in default, with little prospect for recovery of principal or interest. |
| D (Lr) Default | Loans/facilities rated D (Lr) are in default or are expected to default on scheduled payment dates. |
(All loans/facilities with original maturity exceeding one year)
*Note: CRAB appends numerical modifiers 1, 2, and 3 to each generic rating classification from AA through CCC. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category.
Loan/Facilities Rating Scales and Definitions – Short Term
| RATING | DEFINITION |
| ST-1 Highest Grade | This rating indicates that the degree of safety regarding timely payment on the loans/facilities is very strong. |
| ST-2 High Grade | This rating indicates that the degree of safety regarding timely payment on the loans/facilities is strong; however, the relative degree of safety is lower than that for issues rated higher. |
| ST-3 Adequate Grade | This rating indicates that the degree of safety regarding timely payment on the loans/facilities is adequate; however, the issues are more vulnerable to the adverse effects of changing circumstances than issues rated in the two higher categories. |
| ST-4 Marginal | This rating indicates that the degree of safety regarding timely payment on the loans/facilities is marginal; and the issues are quite vulnerable to the adverse effects of changing circumstances. |
| ST-5 Inadequate Grade | This rating indicates that the degree of safety regarding timely payment on the loans/facilities is minimal, and it is likely to be adversely affected by short-term adversity or less favorable conditions. |
| ST-6 Lowest Grade | This rating indicates that the loans/facilities are expected to be in default on maturity or is in default. |
(All loans/facilities with original maturity within one year)
SME Rating Scales and Definitions
| RATING | DEFINITION |
| CRAB – SE 1/ME 1 | The highest credit-quality rating assigned by CRAB to an SME |
| CRAB – SE 2/ME 2 | The high credit-quality rating assigned by CRAB to an SME |
| CRAB – SE 3/ME 3 | The adequate credit-quality rating assigned by CRAB to an SME |
| CRAB – SE 4/ME 4 | The moderate credit-quality rating assigned by CRAB to an SME |
| CRAB – SE 5/ME 5 | The inadequate credit-quality rating assigned by CRAB to an SME |
| CRAB – SE 6/ME 6 | The risk prone credit-quality rating assigned by CRAB to an SME |
| CRAB – SE 7/ME 7 | The poor credit-quality rating assigned by CRAB to an SME |
| CRAB – SE 8/ME 8 | The lowest credit-quality rating assigned by CRAB to an SME |
Project Rating Scales and Definitions
| RATING | DEFINITION |
| AAA Triple A | Projects rated AAA have extremely strong capacity to meet financial commitments. These are judged to be of the highest quality, with minimal credit risk. |
| AA1, AA2, AA3* Double A | Projects rated AA have very strong capacity to meet financial commitments. These are judged to be of very high quality, subject to very low credit risk. |
| A1, A2, A3 Single A | Projects rated A have strong capacity to meet financial commitments, but susceptible to the adverse effects of changes in circumstances and economic conditions. These are judged to be of high quality, subject to low credit risk. |
| BBB1, BBB2, BBB3 Triple B | Projects rated BBB have adequate capacity to meet financial commitments but more susceptible to adverse economic conditions or changing circumstances. They are subject to moderate credit risk. Such rated projects possess certain speculative characteristics. |
| BB1, BB2, BB3 Double B | Projects rated BB have inadequate capacity to meet financial commitments. They have major ongoing uncertainties and exposure to adverse business, financial, or economic conditions. Such projects have speculative elements, and are subject to substantial credit risk. |
| B1, B2, B3 Single B | Projects rated B have weak capacity to meet financial commitments. They have speculative elements and are subject to high credit risk. |
| CCC1, CCC2, CCC3 Triple C | Projects rated CCC have very weak capacity to meet financial obligations. They have very weak standing and are subject to very high credit risk. |
| CC Double C | Projects rated CC have extremely weak capacity to meet financial obligations. They are highly speculative and are likely in, or very near, default, with some prospect of recovery of principal and interest. |
| C Single C | Projects rated C are highly vulnerable to non-payment, have payment arrearages allowed by the terms of the documents, or subject of bankruptcy petition, but have not experienced a payment default. Payments may have been suspended in accordance with the instrument’s terms. They are typically in default, with little prospect for recovery of principal or interest. |
| D (Default) | D rating will also be used upon the filing of a bankruptcy petition or similar action if payments on an obligation are jeopardized. |
*Note: CRAB appends numerical modifiers 1, 2, and 3 to each generic rating classification from AA through CCC. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category.
Bank/FI/MFI Rating Scales and Definitions – Long Term
| RATING | DEFINITION |
| AAA Triple A | Extremely strong capacity to meet their financial commitments. ‘AAA’ is the highest issuer credit rating assigned by CRAB. AAA is judged to be of the highest quality, with minimal credit risk. |
| AA1, AA2, AA3* Double A | Very strong capacity to meet their financial commitments. Entities rated ‘AA’ have very strong capacity to meet their financial commitments. They differ from the highest-rated entities only to a small degree. AA is judged to be of very high quality and is subject to very low credit risk. |
| A1, A2, A3 Single A | Strong Capacity & High Quality, Entities rated ‘A’ have strong capacity to meet their financial commitments but are somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than entities in higher-rated categories. A is judged to be of high quality and are subject to low credit risk. |
| BBB1, BBB2, BBB3 Triple B | Adequate Capacity & Medium Quality. Entities rated ‘BBB’ have adequate capacity to meet their financial commitments. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the entities to meet their financial commitments. BBB is subject to moderate credit risk. |
| BB1, BB2, BB3 Double B | Inadequate Capacity & Substantial Credit Risk. Entities rated ‘BB’ are less vulnerable in the near term than other lower-rated entities. However, they faces major ongoing uncertainties and exposure to adverse business, financial, or economic conditions, which may lead to the entity’s inadequate capacity to meet their financial commitments. BB is judged to have speculative elements and is subject to substantial credit risk. |
| B1, B2, B3 Single B | Weak Capacity & High Credit Risk. Entities rated ‘B’ are more vulnerable than the entities rated ‘BB’, but the entities currently have the capacity to meet their financial commitments. Adverse business, financial, or economic conditions are likely to impair the entities’ capacity or willingness to meet their financial commitments. B is considered speculative and weak capacity and is subject to high credit risk. |
| CCC1, CCC2, CCC3 Triple C | Very Weak Capacity & Very High Credit Risk. Entities rated ‘CCC’ are currently vulnerable, and are dependent on favorable business, financial, and economic conditions to meet their financial commitments. CCC is judged to be of very weak standing and is subject to very high credit risk. |
| CC Double C | Extremely Weak Capacity & Extremely High Credit Risk. Entities rated ‘CC’ are currently highly vulnerable. CC is highly speculative and is likely in, or very near, default, with some prospect of recovery of principal and interest. |
| C Single C | Near to Default. A ‘C’ rating is assigned to entities that are currently highly vulnerable to non-payment of obligations, or in the verge of default or faced with insolvency petition or bankruptcy petition or similar actions, but have not yet experienced a payment default with external support. |
| D (Default) | Default. Entities rated ‘D’ are in default. The ‘D’ rating also will be used upon the filing of a bankruptcy petition or the taking of a similar action if payments on an obligation are jeopardized. |
*Note: CRAB appends numerical modifiers 1, 2, and 3 to each generic rating classification from AA through CCC. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category.
Bank/FI/MFI Rating Scales and Definitions – Short Term
| RATING | DEFINITION | |
| ST-1 Highest Grade | Entities rated in this category are considered to have the highest capacity for timely repayment of obligations. Entities rated in this category are characterized with excellent position in terms of liquidity, internal fund generation, and access to alternative sources of funds. | |
| ST-2 High Grade | Entities rated in this category are considered to have strong capacity for timely repayment. Entities rated in this category are characterized with commendable position in terms of liquidity, internal fund generation, and access to alternative sources of funds. | |
| ST-3 Average Grade | Entities rated in this category are considered to average capacity for timely repayment of obligations, although such capacity may impair by adverse changes in business, economic, or financial conditions. Entities rated in this category are characterized with satisfactory level of liquidity, internal fund generation, and access to alternative sources of funds. | |
| ST-4 Below Average Grade | Entities rated in this category are considered to have below average capacity for timely repayment of obligations. Such capacity is highly susceptible to adverse changes in business, economic, or financial conditions than for obligations in higher categories. Entities rated in this category are characterized with average liquidity, internal fund generation, and access to alternative sources of funds. | |
| ST-5 Inadequate Grade | Entities rated in this category are considered to have inadequate capacity for timely repayment of obligations susceptible to adverse changes in business, economic, or financial conditions. Entities rated in this category are characterized with risky position in terms of liquidity, internal fund generation, and access to alternative sources of funds. | |
| ST-6 Lowest Grade | Entities rated in this category are considered to have obligations which have a high risk of default or which are currently in default. Entities rated in this category are characterized with risky position in terms of liquidity, internal fund generation, and access to alternative sources of funds. | |
Life Insurance/Non-Life Insurance Rating Scales and Definitions- Long Term
| RATING | DEFINITION |
| AAA Triple A | Insurance Companies rated ‘AAA’ have extremely strong financial security characteristics. ‘AAA’ is the highest Insurer Financial Strength Rating assigned by CRAB. |
| AA1, AA2, AA3* Double A | Insurance Companies rated ‘AA’ have very strong financial security characteristics, differing only slightly from those rated higher. |
| A1, A2, A3 Single A | Insurance Companies rated ‘A’ have strong financial security characteristics, but are somewhat more likely to be affected by adverse business conditions than Insurers with higher ratings. |
| BBB1, BBB2, BBB3 Triple B | Insurance Companies rated ‘BBB’ have good financial security characteristics, but are more likely to be affected by adverse business conditions than higher rated insurers. |
| BB1, BB2, BB3 Double B | Insurance Companies rated ‘BB’ have marginal financial security characteristics. Positive attributes exist, but adverse business conditions could lead to insufficient ability to meet financial commitments. |
| B1, B2, B3 Single B | Insurance Companies rated ‘B’ have weak financial security characteristics. Adverse business conditions are likely to impair their ability to meet financial commitments. |
| CCC1, CCC2, CCC3 Triple C | Insurance Companies rated ‘CCC’ have very weak financial security characteristics, and are dependent on favorable business conditions to meet financial commitments. |
| CC Double C | Insurance Companies rated ‘CC’ have extremely weak financial security characteristics and are likely not to meet some of their financial commitments. |
| C Single C | A ‘C’ rating is assigned to insurance companies that are currently highly vulnerable to non-payment, having obligations with payment arrearages allowed by the terms of the documents, or have obligations subject of a bankruptcy petition or similar action though have not experienced a payment default. C is typically in default, with little prospect for meeting its financial commitments. |
| D (Default) | ‘D’ is assigned to insurance companies which are in default. The ‘D’ rating also will be used upon the filing of a bankruptcy petition or the taking of a similar action if payments on an obligation are jeopardized. |
*Note: CRAB appends numerical modifiers 1, 2, and 3 to each generic rating classification from AA through CCC. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category.
Non-Life Insurance Rating Scales and Definitions- Short Term
| RATING | DEFINITION |
| ST-1 | Insurance companies rated ‘ST 1’ have strong ability to meet their financial commitments on short-term policy obligations. They are rated in the highest category by CRAB. |
| ST-2 | Insurance companies rated ‘ST 2’ have a good ability to meet their financial commitments on short-term policy obligations. However, they are somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than insurers in the highest rating category. |
| ST-3 | Insurance Companies rated ‘ST 3’ have an adequate ability to meet their financial commitments on short-term policy obligations. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened ability of the insurers to meet their financial obligations. |
| ST-4 | Insurance Companies rated ‘ST 4’ are regarded as vulnerable and has significant speculative characteristics. The insurance companies currently have the ability to meet their financial commitments on short-term policy obligations; however, they may be facing major ongoing uncertainties which can lead to the insurer’s inadequate ability to meet their financial obligations. |
| ST-5 | Insurance Companies rated ‘ST 5’ are regarded as currently vulnerable to non-payment and are dependent upon favorable business, financial, and economic conditions for them to meet their financial commitments on short-term policy obligations. |
| ST -6 | Insurance Companies rated ‘ST 6’ are considered to have Obligations which have a high risk of default or which are currently in default. |
Brokerage/Merchant Bank Rating Scales and Definitions
| RATING | DEFINITION |
| AAA Triple A | Companies rated in this category have extremely strong capacity to meet financial commitments. These companies are judged to be of the highest quality, with minimal credit risk. |
| AA1, AA2, AA3* Double A | Companies rated in this category have very strong capacity to meet financial commitments. These companies are judged to be of very high quality, subject to very low credit risk. |
| A1, A2, A3 Single A | Companies rated in this category have strong capacity to meet financial commitments, but are susceptible to the adverse effects of changes in circumstances and economic conditions. These companies are judged to be of high quality, subject to low credit risk. |
| BBB1, BBB2, BBB3 Triple B | Companies rated in this category have adequate capacity to meet financial commitments but more susceptible to adverse economic conditions or changing circumstances. These companies are subject to moderate credit risk. Such companies possess certain speculative characteristics. |
| BB1, BB2, BB3 Double B | Companies rated in this category have inadequate capacity to meet financial commitments. Have major ongoing uncertainties and exposure to adverse business, financial, or economic conditions. These companies have speculative elements, subject to substantial credit risk. |
| B1, B2, B3 Single B | Companies rated in this category have weak capacity to meet financial commitments. These companies have speculative elements, subject to high credit risk. |
| CCC1, CCC2, CCC3 Triple C | Companies rated in this category have very weak capacity to meet financial obligations. These companies have very weak standing and are subject to very high credit risk. |
| CC Double C | Companies rated in this category have extremely weak capacity to meet financial obligations. These companies are highly speculative and are likely in, or very near, default, with some prospect of recovery of principal and interest. |
| C Single C | Companies rated in this category are highly vulnerable to non-payment, have payment arrearages allowed by the terms of the documents, or subject of bankruptcy petition, but have not experienced a payment default. Payments may have been suspended in accordance with the instrument’s terms. These companies are typically in default, with little prospect for recovery of principal or interest. |
| D (Default) | D rating will also be used upon the filing of a bankruptcy petition or similar action if payments on an obligation are jeopardized. |
*Note: CRAB appends numerical modifiers 1, 2, and 3 to each generic rating classification from AA through CCC. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category.
Debt Instrument Rating Scales and Definitions – Short Term
| Rating | Definition |
| AAA Triple A | Debt instruments rated AAA have extremely strong capacity to meet financial commitments. These are judged to be of the highest quality, with minimal credit risk. |
| AA1, AA2, AA3* Double A | Debt instruments rated AA have very strong capacity to meet financial commitments. These are judged to be of very high quality, subject to very low credit risk. |
| A1, A2, A3 Single A | Debt instruments rated A have strong capacity to meet financial commitments, but susceptible to the adverse effects of changes in circumstances and economic conditions. These are judged to be of high quality, subject to low credit risk. |
| BBB1, BBB2, BBB3 Triple B | Debt instruments rated BBB have adequate capacity to meet financial commitments but more susceptible to adverse economic conditions or changing circumstances. They are subject to moderate credit risk. Such rated projects possess certain speculative characteristics. |
| BB1, BB2, BB3 Double B | Debt instruments rated BB have inadequate capacity to meet financial commitments. They have major ongoing uncertainties and exposure to adverse business, financial, or economic conditions. Such projects have speculative elements, and are subject to substantial credit risk. |
| B1, B2, B3 Single B | Debt instruments rated B have weak capacity to meet financial commitments. They have speculative elements and are subject to high credit risk. |
| CCC1, CCC2, CCC3 Triple C | Debt instruments rated CCC have very weak capacity to meet financial obligations. They have very weak standing and are subject to very high credit risk. |
| CC Double C | Debt instruments rated CC have extremely weak capacity to meet financial obligations. They are highly speculative and are likely in, or very near, default, with some prospect of recovery of principal and interest. |
| C Single C | Debt instruments rated C are highly vulnerable to non-payment, have payment arrearages allowed by the terms of the documents, or subject of bankruptcy petition, but have not experienced a payment default. Payments may have been suspended in accordance with the instrument’s terms. They are typically in default, with little prospect for recovery of principal or interest. |
| D (Default) | D rating will also be used upon the filing of a bankruptcy petition or similar action if payments on an obligation are jeopardized. |
*Note: CRAB appends numerical modifiers 1, 2, and 3 to each generic rating classification from AA through CCC. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category.
MFI Social Rating Scales and Definitions
| RATING | DEFINITION |
| SR 1+ (Excellent) | A SR1+ grade indicates that an MFI’s infrastructure and processes are consistent with highest likelihood of operating in the best interests of its customers, that this is among its highest priorities and that the risk of causing adverse effect to its customers and other stakeholders is very low. A SR1+ grade is consistent with an MFI that: has a highly coordinated and strategic operation in order to accomplish its social missionadheres to best practice across all of the key SPA factors and most of the sub-factorsdemonstrates it has well-established and reliable information systems, internal controls and procedures relating to the information provided for the SRmaintains the highest standards in terms of customer over-indebtedness and debt collection practicesexcellent internal processes aligning performance with social mission, excellent outreach, extremely likely to create significant social impact now and in the future. |
| SR 1 (Strong) | A SR 1 grade indicates that an MFI’s infrastructure and processes are consistent with a very high likelihood of operating in the best interests of its customers, that this is among its very high priorities and that the risk of causing adverse effect to its customers and other stakeholders is low. A SR 1 grade is consistent with an MFI that: has a strong coordinated and strategic operation in order to accomplish its social missionadheres to best practice across most of the key SR factors and most of the sub-factorsdemonstrates it has established and reliable information systems, internal controls and procedures relating to the information provided for the SRmaintains the high standards in terms of customer over-indebtedness and debt collection practices.strong internal processes aligning performance with social mission, very good outreach, very likely to create significant social impact now and in the future. |
| SR 2 (Good) | A SR 2 grade indicates that an MFI’s infrastructure and processes are consistent with a high likelihood of operating in the best interests of its customers, that this is among its high priorities and that the risk of causing adverse effect to its customers and other stakeholders is low. A SR 2 grade is consistent with a MFI that: coordinates strategic operations to accomplish its social missionadheres to best practice on almost all of the key SR factorsdemonstrates that it has reliable information systems, internal controls and procedures relating to the information provided for the SRmaintains good standards in terms of customer over-indebtedness and debt collection practices.Good internal processes aligning performance with social mission, good outreach, more likely to create significant social impact now and in the future. |
| SR 3 (Adequate) | A SR 3 grade indicates that an MFI’s infrastructure and processes are consistent with a good likelihood of operating in the best interests of its customers, that this is among its priorities and that it attempts to manage the risk of causing adverse effect to its customers and other stakeholders. A SR 3 grade is consistent with an MFI that: adheres to good practice on most of the key SR factorsdemonstrates that it has adequate information systems, internal controls and procedures relating to the information provided for the SRmaintains reasonable standards in terms of customer protection.adequate internal processes aligning performance with social mission, adequate outreach, likely to create significant social impact now and in the future. |
| SR 4 (Intermediate) | A SR 4 grade indicates that an MFI’s infrastructure and processes show some adherence to operating in the best interests of its customers, and that this is among its priorities. A SR 4 grade is consistent with an MFI that: adheres to good practice on some of the key SR factorshas weak information systems, internal controls and procedures relating to the information provided for the SR. maintains some standards in terms of customer protection. weak internal processes aligning performance with social mission, adequate outreach, likely to create significant social impact with threat to long-term social impact. |
| SR 5 (Weak) | A SR 5 grade indicates that an MFI’s infrastructure and processes do not show evidence of being in operating in the interests of its customers, and that this is among its priorities. A SR 5 grade is consistent with an MFI that: adheres to weak practice on most of the key SR factorshas weak information systems, internal controls and procedures relating to the information provided for the SR.maintains insignificant standards in terms of customer protection.weak internal processes aligning performance with social mission, weak outreach, less likely to create significant social impact with threat to long-term social impact. |
| SR 6 (Very Weak) | A SR 6 grade indicates that an MFI’s infrastructure and processes do not show any evidence of being in operating in the interests of its customers, and that this is among its priorities. A SR 6 grade is consistent with an MFI that: adheres to very weak practice across most of the key SR factors and most of the sub factorsmaintains no standards in terms of customer protection.weak internal processes aligning performance with social mission, weak outreach, less likely to create significant social impact with threat to long-term social impact.poor internal processes aligning performance with social mission, weak outreach, unlikely to create significant social impact both now and in the future. |
| SR 7 (Poor) | An SR 7 grade indicates that an MFI’s infrastructure and processes do not show evidence of being in the best interests of its customers, and that this may not be among its priorities. A SR 7 grade is consistent with an MFI that: has no or inadequate information systems, internal controls and procedures relating to the information provided for the SR.maintains no standards in terms of customer protection.poor internal processes aligning performance with social mission, poor outreach, extremely unlikely to create significant social impact both now and in the future. |