Just like shares are listed on the stock exchange, debt securities are also listed on a stock exchange. When a public company lists its debt securities on stock exchanges, it has to comply with the Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008 (ILDS Regulations), in addition to Companies Act, 2013. Infomerics undertakes credit rating of all types of such debt instruments. These include all medium and long-term debt securities such as debentures, bonds (including convertible bonds/Non-Convertible Bonds) and fixed deposits. The primary focus of the rating exercise is to assess future cash generation capability and their adequacy to meet debt obligations in the future. The analysis therefore attempts to determine the fundamentals of the business and the probabilities of change in these fundamentals, which could affect the creditworthiness of the borrower. The rating methodology deals with the operational characteristics as well as the financial characteristics. Besides quantitative factors, qualitative aspects like assessment of management capabilities play a very important role in arriving at the rating for an instrument. The relative importance of qualitative and quantitative components of the analysis varies with the type of issuer.