Corporate credit rating | Рейтинговое Агентство РФЦА

CREDIT RATING OF MICROCREDIT ORGANIZATIONS

CORPORATE CREDIT RATING

Long-term ratings*

AAA	This is the highest CCR assigned by RFCA Ratings Entities awarded ‘AAA’ ratings have superior credit profiles. These entities are market leaders and have very strong business and financial fundamentals.
АА	Entities with “AA” ratings have strong credit profiles. The business and financial fundamentals of these companies are viewed to be sound. The rating only differs from the highest created category by a small degree.
А	Entities assigned ‘A’ ratings have adequate credit profiles. They are more susceptible to changes in circumstances and economic conditions than entities in higher-rated categories.
ВВВ	Entities rated ‘BBB’ possess moderate credit profiles. Changes in circumstances are more likely to lead to weakened credit profiles than entities in higher-rated categories.
ВВ	Entities rated“BB” have fairly weak credit profiles. These entities are generally weak, whether financially and/or operationally. Their credit profiles are highly vulnerable to adverse changes in circumstances and/or economic conditions.
В	Entities ranked “B” have weak credit profiles. These entities generally face weaknesses in their financial fundamentals and/or operating environments. They have limited capacity to withstand any adverse changes in circumstances and/or economic conditions.
С	Entities ranked “C”have very weak credit profiles. Their credit profiles are highly dependent on favorable circumstances and economic conditions. Any adverse changes in circumstances and/or economic conditions would impair the financial capacities of these entities. The likehood of default is high.
D	Entities rated “D” have inferior credit profiles. These entities require sustained external support to continue as going concerns. The rating indicates that the entity is currently in default or faces imminent default, whether or not formally declared.

SHORT-TERM RATINGS

P1	Entities rated ‘P1’ have very strong capacity to meet financial obligations.
P2	Entities rated ‘P2’ have strong ability with regard to timely payment of financial obligations.
P3	Entities rated ‘P3’ have adequate safety with regard to timely payment of obligations. These entities are more vulnerable to the effects of changing circumstances that those rated in Pa and P2 categories.
NP	Entities rated ‘NP’ have high investment risk, with doubtful capacity for timely payment of short-term obligations.

RATING OF PROMISSORY NOTES

Long-term ratings*

AAA	The rating of the promissory note of category ААА designates the best ability of the borrower in time and in complete volume to pay percent and a debt capital amount under the given promissory note.
AA	The rating of the promissory note of category АА designates very high ability of the borrower in time to pay percent and a debt capital amount under the given promissory note.
A	The rating of the promissory note of a category A designates high ability of the borrower in time to pay percent and a debt capital amount under the given promissory note. However the given ability can be more subject to influence of changes of circumstances and an economic conjuncture, than in cases of ratings of higher categories.
BBB	The rating of the promissory note of category ВВВ designates average ability of the borrower to execute the given promissory note. Negative changes of circumstances and an economic conjuncture with higher probability can lower the given ability.
BB	The rating of the promissory note of category ВВ designates insufficient ability of the borrower in time to pay percent and a debt capital amount under the given promissory note.
B	The rating of the promissory note of a category B designates low ability of the borrower in time to pay percent and a debt capital amount under the given promissory note. Ratings of this category indicate existence of high risk of delayed fulfillment of the given obligation. The given promissory note is more subject to adverse economic conditions that can weaken ability of the borrower to pay percent or a debt capital amount.
C	The rating of the promissory note of a category C designates availability of very high risk of a default. Duly interest payments and a debt capital amount are possible only under favorable conditions.
D	Assignment to the promissory note of the given rating designates that interest payments and-or a debt capital amount are terminated by the current moment, or the default will come in the near future.

Short-term ratings

P1	Very high ability of the emitter in time and in complete volume to pay percent and a debt capital amount under the given promissory note.
P2	High ability of the emitter in time and in complete volume to pay percent and a debt capital amount under the given promissory note.
P3	Average ability of the emitter to pay percent and a debt capital amount under the given promissory note. However, the given ability can be more subject to influence of changes of circumstances and an economic conjuncture, than in case of ratings of level Р1 and Р2.
NP	Average ability of the emitter to pay percent and a debt capital amount under the given promissory note. However, the given ability can be more subject to influence of changes of circumstances and an economic conjuncture, than in case of ratings of level Р1 and Р2.

CORPORATE GOVERNANCE RATING

The companies with high practice of a corporate governance
KZ CG7 KZ CG6	The given rating reflects, according to RA RFCA, a high level of a corporate governance of the company. The given rating confirms practical absence of risks of key parameters of an estimation of level of corporate governance.
The companies with good practice of a corporate governance
KZ CG5 KZ CG4	The given rating reflects, according to RA RFCA, good level of practice of a corporate governance of the company. The given rating confirms insignificant risks of key parameters of an estimation of level of corporate governance.
The companies with average practice corporate governance
KZ CG3 KZ CG2	The given rating reflects, according to RA RFCA, an average level of practice of a corporate governance of the company. The given rating testifies that there are average risks of key parameters of an estimation of level of corporate governance.
The companies with low practice of a corporate governance
KZ CG1	The given rating reflects, according to joint-stock company RA RFCA, weak level of practice of a corporate governance of the company. The given rating testifies that there are significant risks of key parameters of an estimation of level of corporate governance.

Special category

Revision of corporate governance rating.

This category is used in the rankings if during the period of observation of rated corporate governance there were any significant changes that may affect to the overall picture of the level of corporate governance.

Those factors may be:

1. Change of chairman of the executive structure (especially if the executive authority represented by an individual person);

2. Changing of the board of directors or changes in board members.

3. Big deals, done by company (which could affect to company’s activity).

4. Restructure of the company.

5. Court proceedings and conflicts of interests.

6. Merge practice and/or acquisitions.

The forecast on a corporate governance rating

In the process of rating RA RFCA will be focused on key indicators, which may subsequently affect to the level of corporate governance. However it is necessary to notice that the forecast reflects probability of possible fluctuations of estimation and is not the certificate of obligatory changes of a rating of the company.

Positive	This forecast shows that in the long term rating of corporate governance can be changed in the direction of improvement.
Stable	This forecast indicates that in the future the company's rating remain to be stable.
Negative	This forecast means that in the future the company's rating may be changed downward.

CREDIT RATING OF MICROCREDIT ORGANIZATIONS

AAA	Not applicable
AA	Not applicable
A	МCО which received a rating of the given category, has high quality management, an optimum composition of balances, has very high and stable indicators of profitableness and МCО doesn’t have serious problems. Changing’s in financial and economic conditions can slightly affect operational activity of МCО.
BBB	MCO which received a rating in this category, has a high quality management, adequate balance sheet structure and has high rates of profitability, but there are one or two problem areas that can pose a risk in the future. Change of financial and economic conditions are more likely to affect the operating activities of the MCO, as compared with the MCO, rated A.
BB	MCO which received a rating in this category, has medium quality management, reasonable structure, balance, and has medium profitability, but there are several areas which may not pose serious threats in the short term, but the changes in financial and economic conditions, with high probability can affect to operating activities of MCO.
B	At MCO, which received rating of this category, have medium level of management, low profitability and low quality of loan portfolio. This rating indicates that MCO can meet its obligations yet, but the MCO is required to take urgent arrangements to reduce credit and operational risk
C	MCO which received a rating in this category has a low quality management, and very low quality loan portfolio. This rating indicates that the MCO has serious problems and to meet its obligations of the organization required external financial support or a favorable financial and economic condition.
D	MCO which received a rating in this category, either already in a state of default, or it will come in the near future.