Bank Loan Rating (BLR) reflects Infomerics’s views on the likelihood of the financial obligations of the corporate being serviced on time, and in full, as specified in the terms and conditions of the facility. Infomerics assigns ratings on the long- and short-term scales, depending on the original maturity of the facility.
Infomerics has been assigning BLRs since June 2017, following RBI’s announcement of prudential guidelines for implementation of the new capital adequacy framework for banks in April 2007. These guidelines require banks to link the capital they maintain on credit exposures, to the external credit ratings on these exposures.
Infomerics rates both fund and non-fund based facilities of banks. Fund based facilities rated include: packing credit, cash credit, working capital demand loan (WCDL), purchase bill discounting, bill purchase/discounting, factoring/forfeiting, post-shipment credit, short-term loan, foreign currency non-resident loan, term loans, external commercial borrowings (ECBs), mortgage loan facility, and vendor financing. Non-fund based facilities rated include: bank guarantee, letter of credit, and foreign exchange forward contract limit.