Banking its credit rating pattren
pooja dedhia
(Querist) 29 July 2012
This query is : Resolved
what are the ratio important while preparing the CMA data .consideration of the rating pattern. this pattern is more important for the banking sector?
c.p.s. ramachary
(Expert) 31 July 2012
This relates to general banking and not related to banking law practice. This is new subject to lawyers forum. Hence you have to contact credit department in banks.
ajay sethi
(Expert) 31 July 2012
A bank loan rating indicates the degree of risk with regard to timely payment of the bank facility being rated. The facility includes principal and interest, if any, on the principal.
RBI issued guidelines on capital adequacy for banks in 2007. The guidelines require banks to provide capital on the credit exposure as per credit ratings assigned by approved external credit assessment institutions (ECAIs), such as CRISIL.
malipeddi jaggarao
(Expert) 31 July 2012
The most important ratios the bankers look into while analysing the CMA Data is : for working capital limits the current ratio i.e., Current Assets divided by current liabilities - should be minimum 1.17, desired 1.33. For term loan, the bankers look into DSCR i.e., Debt Service Coverage Ratio to analyse the capacity of repayment of interest and instalments. Basing on the ratios, conduct of the account etc., the rating will be A, AA and AAA. AAA rating will get maximum benefit.
malipeddi jaggarao
(Expert) 31 July 2012
Less than A, generally bankers will not accept for financing especially in new accounts.
c.p.s. ramachary
(Expert) 04 August 2012
Thanks to Experts Mr.Ajay Sethi and Mr. Malipeddi Jagga Rao for furnishing valuable information.
Guest
(Expert) 04 August 2012
Perfectly guided by Mr. Jaggarao
