Information Document - Dhaka Stock Exchange

CREDIT RATING REPORTONKHULNA POWER COMPANY LTD.CRISL RATING SCALES AND DEFINITIONSLONG-TERM RATINGS OF CORPORATERATINGAAATriple A(HighestSafety)AA+, AA,AA-(Double A)(High Safety)A+, A, A-Single A(AdequateSafety)BBB+, BBB,BBB-Triple B(ModerateSafety)BB+, BB,BB-Double B(InadequateSafety)B+, B, B-Single B(Risky)CCC+,CCC,CCC-Triple C(Vulnerable)CC+,CC, CC-Double C(HighVulnerable)C+,C,C-(ExtremelySpeculative)D(Default)Investment GradeDEFINITIONEntities rated in this category are adjudged to be of best quality, offer highestsafety and have highest credit quality. Risk factors are negligible and riskfree, nearest to risk free Government bonds and securities. Changingeconomic circumstances are unlikely to have any serious impact on thiscategory of companies.Entities rated in this category are adjudged to be of high quality, offer highersafety and have high credit quality. This level of rating indicates a corporateentity with a sound credit profile and without significant problems. Risks aremodest and may vary slightly from time to time because of economicconditions.Entities rated in this category are adjudged to offer adequate safety for timelyrepayment of financial obligations. This level of rating indicates a corporateentity with an adequate credit profile. Risk factors are more variable andgreater in periods of economic stress than those rated in the highercategories.Entities rated in this category are adjudged to offer moderate degree ofsafety for timely repayment of financial obligations. This level of ratingindicates that a company is under-performing in some areas. Risk factors aremore variable in periods of economic stress than those rated in the highercategories. These entities are however considered to have the capability toovercome the above-mentioned limitations.Speculative GradeEntities rated in this category are adjudged to lack key protection factors,which results in an inadequate safety. This level of rating indicates a companyas below investment grade but deemed likely to meet obligations when due.Overall quality may move up or down frequently within this category.Entities rated in this category are adjudged to be with high risk. Timelyrepayment of financial obligations is impaired by serious problems which theentity is faced with. Whilst an entity rated in this category might be currentlymeeting obligations in time through creating external liabilities.Entities rated in this category are adjudged to be vulnerable and might fail tomeet its repayments frequently or it may currently meeting obligations intime through creating external liabilities. Continuance of this would dependupon favorable economic conditions or on some degree of external support.Entities rated in this category are adjudged to be very highly vulnerable.Entities might not have required financial flexibility to continue meetingobligations; however, continuance of timely repayment is subject to externalsupport.Entities rated in this category are adjudged to be with extremely speculativein timely repayment of financial obligations. This level of rating indicatesentities with very serious problems and unless external support is provided,they would be unable to meet financial obligations.Default GradeEntities rated in this category are adjudged to be either already in default orexpected to be in default.Page 14 of 15Note: For long-term ratings, CRISL assigns + (Positive) sign to indicate that the issue is ranked atthe upper-end of its generic rating category and - (Minus) sign to indicate that the issue is ranked atthe bottom end of its generic rating category. Long-term ratings without any sign denote mid-levelsof each group.