Through Credit Rating, we estimate credit worthiness of an individual, corporation or a country. It is an opinion formed by credit evaluators of a borrower’s potential to repay debt. Every rating grade comes with its possibility of default, which in turn assists investor/lender to take informed investment decision. Various financial, non-financial parameters, past credit history and future outlook are determined before coming to a rating. There are various types of ratings viz. Issuer Rating/ Obligor Rating, Bank loan Rating, Issue based Rating, Project Rating etc. Based on type of borrower/issuer, Ratings can be classified as Individual Rating, Corporate Rating, Bank/Financial Institutions Rating, SME Rating, MFI Rating etc.

A rating procedure generally involves

• Rating request
• Submission of application, relevant documents and fees
• Site visit and management interview
• Rating assessment procedure
• Rating committee, rating decision
• Rating dissemination

SMERA

SMERA is the country's first Rating agency primarily focusing on the Indian Micro, Small and Medium Enterprise (MSME) segment.

SMERA's primary objective is to provide Ratings that are comprehensive, transparent and reliable. This would facilitate greater and easier flow of credit from the banking sector to MSMEs.

1.   SMERA Credit Ratings provides a comprehensive and independent third-party evaluation of the overall condition of the applicant. Currently, SMERA offers Obligor Ratings which takes into account the financial and non-financial factors that have bearing on the credit worthiness of the applicant.

2.   At present, SMERA offers following products:

• MSME Rating

• Greenfield & Brownfield Grading

• Microfinance Institutions (MFI) Rating

• Green Rating

• Risk Management  Solutions

3.    SMERA Rating’s intention is to enhance the market standing of the applicant amongst lenders, trading partners and prospective customers.