Corporate Brochure - Brickwork Ratings

Brickwork Ratings
C R E D I T R A T I N G A G E N C Y
For informed
investment decisions

Brickwork Ratings
Licensed Credit Rating Agency
Brickwork Ratings, a SEBI licensed credit rating agency, founded by bankers,
credit rating professionals, former regulators as well as professors, is committed
to promoting Financial Literacy, having its corporate office in Bangalore and
branches at New Delhi, Mumbai and Hyderabad.
While Indian financial markets have been liberalized in the past two decades,
useful information is still scarce. Complex structures, inadequacy of information
and below-average disclosures make it difficult for retail investors to make
sense of financial markets. No wonder small investors always lose money in
every market crash.
Brickwork's proprietary models in credit risk customised for large corporates,
SMEs, banks, financial institutions, state and local governments, help investors
understand the complexity of the investment world.
Brickwork Ratings is
committed to promoting
Financial Literacy to help
investors make informed
investment decisions.

Rating Services
Issuer Rating for
State and Local Governments
Corporates
Banks and Financial Institutions
Long Term Rating for
Bonds, Debentures
Tier I and II Bonds for Banks
Structured Products
Fixed Deposit Rating
Short Term Rating for
Commercial Papers
CDs of Banks and Corporates
IPO Grading
Security Receipts Rating
SME Rating
Corporate Governance Rating
Mutual Funds Rating
Facility Rating
Insurance Company Rating
Real Estate Project Rating
Real Estate Developer Rating
Who can benefit
•Asset Reconstruction Companies •Banks & Financial Institutions
•Brokers •Charitable Organizations & NGOs •Commodity &
Derivative exchanges •Consultancies •Co-operative Banks &
Societies •Developmental Authorities •Educational Institutions
• Exporters •Hedge Funds •Importers •Insurance Companies
•Issuers •JVs •Local Bodies •Member of Stock •Mergers &
Acquisition Advisors •Mutual Funds •Non-banking Financial
Companies •Partnerships •Private and Govt. Companies •Private
Equity Funds •Public •R&D Ventures •Regulators •SEZs •SPVs
State Governments •Trusts •Underwriters •Venture Funds
Education and Training Services
Brickwork Workshops – Customized Training Services
Research Services
Risk Management Models
Accreditation of Valuation Agencies
Brickwork Workshops
Advanced Financial Management for Managers
Basel II and Risk Management
Corporate Finance & Valuation
Corporate Governance & Financial Strategy
Credit Appraisal, Monitoring & Credit Rating
Credit Risk & Portfolio Management
Distressed Asset Valuation
Equity Research and Analysis
Evaluation of Mutual Funds
Excel Models for Finance Managers
Finance for Non Financial Managers
Financial Due Diligence
Financial Literacy
Forex Hedging & Export Finance
International Financial Markets
Merger & Acquisition Analysis
Practical Finance - What they don’t teach in B-Schools
Risk Management for Financial Institutions
Security Analysis and Portfolio Management
Term Lending and Project Appraisal
Every workshop has a focused approach &helps participants to get an in-depth perspective on the topic
Bank GMs, DGMs, AGMs and Chief Managers as well as Treasury Staff, Corporate Senior Management, CEOs,
CFOs, CXOs and Treasury Managers, would greatly benefit from attending such workshops.
The workshops are conducted by Brickwork Ratings professionals with extensive experience in finance, risk
management, valuation and credit markets. Guest faculty with domain expertise also add value to the workshops.
2

Rating Criteria & Process
MANAGEMENT RISK
FINANCIAL SECTOR
BUSINESS RISK
Vs
LONG-TERM
SHORT-TERM
Brickwork
Rating
Criteria
MANUFACTURING SECTOR
SOLICITED
Vs
UNSOLICITED
Brickwork's general rating criteria looks at Business Risk,
Industry Risk, Management Risk as well as Financial Risk.
P - People
Brickwork has individual criteria for each category of
issuers while analyzing Financial Sector entities,
Manufacturing Sector, Infrastructure Sector,
Financial Sector & Government and Local
Bodies. While analyzing financial sector
entities, Brickwork uses CAMEL - TP
framework.
C - Capital adequacy
A - Asset quality
M - Management quality
E - Earnings quality
L - Liquidity
T - Technology
Brickwork Credit Rating Process
Pre-Rating
Rating
Post-Rating
Rating Mandate
& Agreement
Consistent Application of
Rating Policies
Publication of Ratings
Quality Integrity - Non-Assurance
of Particular Rating
Use of Criteria, Research &
Management Meetings
Surveillance
Explanation of Critical Policy
and Process to Issuer
Quality Assurance by
Rating Committee
Withdrawal
Confidentiality Requirements
Initial Rating Assignment &
Appeal Process
3

Rating Scale
Long/ Medium Term Rating Scale (for debt instruments like
Bonds, Non Convertible Debentures, Certificates of Deposit,
Fixed Deposits, Convertible Preference Shares, Redeemable
Preference Shares and Structured Obligations, all with
original maturity exceeding one year.)
IPO Grading
BWR IPO Grade 5:
BWR IPO Grade 4:
BWR IPO Grade 3:
BWR IPO Grade 2:
BWR IPO Grade 1:
Strong fundamentals
Above-average fundamentals
Average fundamentals
Below-average fundamentals
Poor fundamentals
Investment Grade Rating
BWR AAA+
BWR AAA
BWR AA
BWR A
BWR BBB
Speculative Grade Rating
BWR BB
BWR B
BWR C
BWR D
Best credit quality, in terms of timely servicing of debt
obligations.
Excellent credit quality, in terms of timely servicing of
debt obligations.
High credit quality in terms of timely servicing of debt
obligations.
Adequate credit quality. in terms of timely servicing of
debt obligations.
Moderate credit quality in terms of timely servicing of
debt obligations.
Inadequate credit quality.
Low credit quality.
Very Low credit quality.
Default or expected to Default.
Modifiers +/- used for AA to C to denote the level in a category. Only +
modifier is used for AAA.
Short Term Instruments Rating
The ‘Short Term Debt Instruments’ with original maturity up to one year.
BWR P1
BWR P2
BWR P3
BWR P4
BWR P5
Excellent credit quality.
High credit quality.
Moderate credit quality.
Low credit quality.
Default or expected to Default.
Modifiers +/- used for P1 to P3 to denote levels within a rating grade
SME Rating
BWR aaa
BWR aa
BWR a
BWR bbb
BWR bb
BWR b
BWR c
BWR d
Fixed Deposit Rating
Investment Grade:
BWR F AAA+
BWR F AAA
4BWR F AA
BWR F A
Speculative Grade:
BWR F B
BWR F C
BWR F D
Excellent credit quality in relation to other SMEs.
High credit quality in relation to other SMEs.
Adequate credit quality in relation to other SMEs.
Moderate credit quality in relation to other SMEs.
Inadequate credit quality in relation to other SMEs.
Low credit quality in relation to other SMEs.
Very Low credit quality in relation to other SMEs.
Default or expected to Default in relation to other
SMEs.
Best safety, in terms of timely servicing of interest &
principal
Excellent safety, in terms of timely servicing of interest
& principal
High safety, in terms of timely servicing of interest &
principal
Adequate safety, in terms of timely servicing of
interest & principal
Low safety, in terms of timely servicing of interest &
principal
Very Low safety, in terms of timely servicing of interest
& principal
Default or expected to Default
Issuer Rating
BWR AAA+
BWR AAA
BWR AA
BWR A
BWR BBB
BWR BB
BWR B
BWR C
BWR D
Best credit worthiness.
Excellent credit worthiness.
High credit worthiness.
Adequate credit worthiness.
Moderate credit worthiness.
Inadequate credit worthiness
Low credit worthiness.
Very Low credit worthiness.
Default or expected to Default.
Corporate Governance Rating
BWR CG 1+ Quality of Corporate Governance is The Best
BWR CG 1 Quality of Corporate Governance is Excellent
BWR CG 2 Quality of Corporate Governance is High
BWR CG 3 Quality of Corporate Governance is Adequate
BWR CG 4 Quality of Corporate Governance is Moderate
BWR CG 5 Quality of Corporate Governance is Inadequate
BWR CG 6 Quality of Corporate Governance is Low
BWR CG 7 Quality of Corporate Governance is Very Low
BWR CG 8 Quality of Corporate Governance is The Lowest
4

Rating Scale
Mutual Fund Rating
Security Receipts Rating
BWR MF AAA+
BWR MF AAA
BWR MF AA
BWR MF A
Best credit quality of underlying Debt portfolio
Excellent credit quality of underlying Debt portfolio
High credit quality of underlying Debt portfolio
Adequate credit quality of underlying Debt portfolio
BW RR1+
BW RR1
BW RR2
Recovery value of the underlying assets greater than
150% of SR Face Value.
Recovery Value of the underlying assets in the range
of 100% - 150% of SR Face Value.
Recovery Value of the underlying assets in the range
of 75% - 100% of SR Face Value.
BWR MF BBB
BWR MF BB
BWR MF B
BWR MF C
Moderate credit quality of underlying Debt portfolio
Inadequate credit quality of underlying Debt portfolio
Low credit quality of underlying Debt portfolio
Very Low credit quality of underlying Debt portfolio
BW RR3
BW RR4
BW RR5
Recovery Value of the underlying assets in the range
of 50% - 75% of SR Face Value.
Recovery Value of the underlying assets in the range
of 25% - 50% of SR Face Value.
Recovery Value of the underlying assets less than
25% of SR Face Value.
Brickwork Family
Balasubramanian N is the Chairman of
Brickwork Ratings. He is the former CMD of
SIDBI, was with Bank of Baroda for 33
years.
Prithviraj K N is a Director of Brickwork
Ratings, and also the Chairman of
Brickwork External Rating Committee. He is
the Administrator, Special Undertakings of
Unit Trust of India (SUUTI), former CMD of
Oriental Bank of Commerce.
Bharati Rao is a Member of Brickwork
External Rating Committee and she is on
Brickwork Advisory Board. She is the former
Deputy Managing Director of State Bank of
India.
Ravishankar D is a founder Director of
Brickwork Ratings, is also the Chairman of
Brickwork Ratings Criteria Committee. Prior
to this, he was CFO of CRISIL and Managing
Director, Risk Solutions- Standard & Poor’s,
Asia-Pacific.
Ghanshyam Dass is a Member of Brickwork
External Rating Committee. He is the Senior
Advisor to KPMG and Advisor to Intel
Capital. Prior to this he was Managing
Director - Asia Pacific, NASDAQ Stock
Market Inc and was also with HSBC for a
long time.
Vivek Kulkarni, IAS (Retd) is Managing
Director, Brickwork Ratings. He is former
Finance Secretary (Resources) and IT
Secretary, Government of Karnataka,
Bangalore. He is also a Visiting Professor in
Finance & Risk Management at the Indian
Institute of Science, Bangalore.
Murthy K R S (Professor) is a Member of
Brickwork External Rating Committee. He is
former Director, IIM-Bangalore.
5

Select Clients
Automobile
Banking Industry
Biotechnology
Copper
Electronics
Financial Institutions
FMCG
Food processing
Healthcare
Information Technology
Life Sciences
Petrochemicals
Pharmaceuticals
Power
SME’s
Steel & Mines
Telecom
Textiles
Hotel & Hospitality
6

BEST Safety
AAA+
Excellent Safety
AAA
+
High Safety
AA
-
Investment
Grades
+
Adequate Safety
A
Moderate safety
-
+
BBB
-
+
Inadequate Safety
BB
Low Safety
-
Speculative
Grades
+
B
-
+
Very Low Safety
C
-
Default Grade
D
Symbols (+, - ) denote modifiers within a rating grade
Brickwork Ratings India Pvt. Ltd.
Bangalore:
55, 1st Main, 3rd Phase
JP Nagar, Bangalore – 560 078
Phone: +91 80 4040 9940
Fax: +91 80 2659 3673
Mobile: +91 966331 BRIC
Mumbai:
1, Pinto Mansion
Sitladevi Temple Road
Mahim (West) Mumbai - 400 016
Phone: +91 22 2430 4902
Mobile: +91 98336 91221
New Delhi:
LGF-122, World Trade Center
Babar Road, Connaught Place
New Delhi - 110001
Phone: +91 11 2341 2232
Fax : +91 11 2341 3896
Mobile: +91 96500 12425
1 - 8 6 0 - 4 2 5 - B R I C www.brickworkratings.com www.Financial-Literacy.in