Rating Scale

Brickwork Ratings (BWR) Rating Symbols and definitions

1. DEBT INSTRUMENTS
   1. Long term debt instruments - instruments with original maturity exceeding one year

   BWR AAA (BWR Triple A)	Instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such instruments carry lowest credit risk.
   BWR AA (BWR Double A)	Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.
   BWR A	Instruments with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such instruments carry low credit risk.
   BWR BBB (BWR Triple B)	Instruments with this rating are considered to have moderate degree of safety regarding timely servicing of financial obligations. Such instruments carry moderate credit risk.
   BWR BB (BWR Double B)	Instruments with this rating are considered to have moderate risk of default regarding timely servicing of financial obligations.
   BWR B	Instruments with this rating are considered to have high risk of default regarding timely servicing of financial obligations.
   BWR C	Instruments with this rating are considered to have very high risk of default regarding timely servicing of financial obligations.
   BWR D	Instruments with this rating are in default or are expected to be in default soon.

   Note:
   • Modifier {"+" (plus) / "-"(minus)} can be used with the rating symbols for the categories BWR AA to BWR C to reflect the comparative standing within the category.
   • BWR assigns rating outlook for ratings from 'AAA' to 'B'. The Rating outlook indicates the direction a rating is likely to move over a period of time and may be classified as Positive, Stable or Negative.
   2. Short term debt instruments- instruments with original maturity of/upto one year

   BWR A1	Instruments with this rating are considered to have very strong degree of safety regarding timely payment of financial obligations. Such instruments carry lowest credit risk.
   BWR A2	Instruments with this rating are considered to have strong degree of safety regarding timely payment of financial obligations. Such instruments carry low credit risk.
   BWR A3	Instruments with this rating are considered to have moderate degree of safety regarding timely payment of financial obligations. Such instruments carry higher credit risk as compared to instruments rated in the two higher categories.
   BWR A4	Instruments with this rating are considered to have minimal degree of safety regarding timely payment of financial obligations. Such instruments carry very high credit risk and are susceptible to default.
   BWR D	Instruments with this rating are in default or expected to be in default on maturity.

   Note:
   • Modifier {"+" (plus)} can be used with the rating symbols for the categories A1 to A4. The modifier reflects the comparative standing within the category. The mapping of long to short term ratings has been explained elsewhere in the criteria.
2. Principal Protected Market Linked Debentures [PPMLD]
   1. Long term debt instruments [PPMLD] - instruments with original maturity exceeding one year

      BWR PP-MLD AAA	Instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such instruments carry lowest credit risk.
      BWR PP-MLD AA	Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.
      BWR PP-MLD A	Instruments with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such instruments carry low credit risk.
      BWR PP-MLD BBB	Instruments with this rating are considered to have moderate degree of safety regarding timely servicing of financial obligations. Such instruments carry moderate credit risk.
      BWR PP-MLD BB	Instruments with this rating are considered to have moderate risk of default regarding timely servicing of financial obligations.
      BWR PP-MLD B	Instruments with this rating are considered to have high risk of default regarding timely servicing of financial obligations.
      BWR PP-MLD C	Instruments with this rating are considered to have very high risk of default regarding timely servicing of financial obligations.
      BWR PP-MLD D	Instruments with this rating are in default or are expected to be in default soon.

      Note:

      • Modifier {"+" (plus) / "-"(minus)} can be used with the rating symbols for the categories BWR PP-MLD AA to BWR PP-MLD C to reflect the comparative standing within the category.
      • BWR assigns rating outlook for ratings from 'AAA' to 'B'. The Rating outlook indicates the direction a rating is likely to move over a period of time and may be classified as Positive, Stable or Negative.
   2. Short term debt instruments [PPMLD]- instruments with original maturity of/upto one year

      BWR PP-MLD A1	Instruments with this rating are considered to have very strong degree of safety regarding timely payment of financial obligations. Such instruments carry lowest credit risk.
      BWR PP-MLD A2	Instruments with this rating are considered to have strong degree of safety regarding timely payment of financial obligations. Such instruments carry low credit risk.
      BWR PP-MLD A3	Instruments with this rating are considered to have moderate degree of safety regarding timely payment of financial obligations. Such instruments carry higher credit risk as compared to instruments rated in the two higher categories.
      BWR PP-MLD A4	Instruments with this rating are considered to have minimal degree of safety regarding timely payment of financial obligations. Such instruments carry very high credit risk and are susceptible to default.
      BWR PP-MLD D	Instruments with this rating are in default or expected to be in default on maturity.

      Note:

      • Modifier {"+" (plus)} can be used with the rating symbols for the categories A1 to A4. The modifier reflects the comparative standing within the category. The mapping of long to short term ratings has been explained elsewhere in the criteria.
3. STRUCTURED FINANCE INSTRUMENTS
   1. Long term structured finance instruments- instruments with original maturity exceeding one year

      BWR AAA (SO) (BWR Triple A (SO))	Instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such instruments carry lowest credit risk.
      BWR AA (SO) (BWR Double A (SO))	Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.
      BWR A (SO)	Instruments with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such instruments carry low credit risk.
      BWR BBB (SO) (BWR Triple B (SO))	Instruments with this rating are considered to have moderate degree of safety regarding timely servicing of financial obligations. Such instruments carry moderate credit risk.
      BWR BB (SO) (BWR Double B (SO))	Instruments with this rating are considered to have moderate risk of default regarding timely servicing of financial obligations.
      BWR B (SO)	Instruments with this rating are considered to have high risk of default regarding timely servicing of financial obligations.
      BWR C (SO)	Instruments with this rating are considered to have very high likelihood of default regarding timely payment of financial obligations.
      BWR D (SO)	Instruments with this rating are in default or are expected to be in default soon.

      Note:

      • Modifier {"+" (plus) / "-"(minus)} can be used with the rating symbols for the categories BWR AA (SO) to BWR C (SO). The modifiers reflect comparative standing within the category.
      • BWR assigns rating outlook for ratings from 'AAA' to 'B'. The Rating outlook indicates the direction a rating is likely to move over a period of time and may be classified as Positive, Stable or Negative.
   2. Short term structured finance instruments- instruments with original maturity of/upto one year

      BWR A1 (SO)	Instruments with this rating are considered to have very strong degree of safety regarding timely payment of financial obligation. Such instruments carry lowest credit risk.
      BWR A2 (SO)	Instruments with this rating are considered to have strong degree of safety regarding timely payment of financial obligation. Such instruments carry low credit risk.
      BWR A3 (SO)	Instruments with this rating are considered to have moderate degree of safety regarding timely payment of financial obligation. Such instruments carry higher credit risk as compared to instruments rated in the two higher categories.
      BWR A4 (SO)	Instruments with this rating are considered to have minimal degree of safety regarding timely payment of financial obligation. Such instruments carry very high credit risk and are susceptible to default.
      BWR D (SO)	Instruments with this rating are in default or expected to be in default on maturity.

      Note:

      • Modifier {"+" (plus)} can be used with the rating symbols for the categories BWR A1 (SO) to BWR A4 (SO). The modifier reflects comparative standing within the category.
4. CREDIT ENHANCEMENT INSTRUMENTS :
   1. Long term Credit Enhancement instruments- instruments with original maturity exceeding one year.

      BWR AAA (CE) (BWR Triple A (CE))	Instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such instruments carry lowest credit risk.
      BWR AA (CE) (BWR Double A (CE))	Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.
      BWR A (CE)	Instruments with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such instruments carry low credit risk.
      BWR BBB (CE) (BWR Triple B (CE))	Instruments with this rating are considered to have moderate degree of safety regarding timely servicing of financial obligations. Such instruments carry moderate credit risk.
      BWR BB (CE) (BWR Double B (CE))	Instruments with this rating are considered to have moderate risk of default regarding timely servicing of financial obligations.
      BWR B (CE)	Instruments with this rating are considered to have high risk of default regarding timely servicing of financial obligations.
      BWR C (CE)	Instruments with this rating are considered to have very high likelihood of default regarding timely payment of financial obligations.
      BWR D (CE)	Instruments with this rating are in default or are expected to be in default soon.

      Note:

      • Modifier {"+" (plus) / "-"(minus)} can be used with the rating symbols for the categories BWR AA(CE) to BWR C(CE). The modifiers reflect the comparative standing within the category.
      • BWR assigns rating outlook for ratings from 'AAA' to 'B'. The Rating outlook indicates the direction a rating is likely to move over a period of time and may be classified as Positive, Stable or Negative.
   2. Short term Credit Enhancement instruments- instruments with original maturity of/upto one year

      BWR A1 (CE)	Instruments with this rating are considered to have very strong degree of safety regarding timely payment of financial obligation. Such instruments carry lowest credit risk.
      BWR A2 (CE)	Instruments with this rating are considered to have strong degree of safety regarding timely payment of financial obligation. Such instruments carry low credit risk.
      BWR A3 (CE)	Instruments with this rating are considered to have moderate degree of safety regarding timely payment of financial obligation. Such instruments carry higher credit risk as compared to instruments rated in the two higher categories.
      BWR A4 (CE)	Instruments with this rating are considered to have minimal degree of safety regarding timely payment of financial obligation. Such instruments carry very high credit risk and are susceptible to default.
      BWR D (CE)	Instruments with this rating are in default or expected to be in default on maturity.

      Note:

      • Modifier {"+" (plus) / "-"(minus)} can be used with the rating symbols for the categories BWR AA(CE) to BWR C(CE). The modifiers reflect the comparative standing within the category.
5. DEBT MUTUAL FUND SCHEMES
   1. Long term debt mutual fund schemes- debt mutual fund schemes that have an original maturity exceeding one year.

      BWR AAAmfs	Schemes with this rating are considered to have the highest degree of safety regarding timely receipt of payments from the investments that they have made.
      BWR AAmfs	Schemes with this rating are considered to have high degree of safety regarding timely receipt of payments from the investments that they have made.
      BWR Amfs	Schemes with this rating are considered to have adequate degree of safety regarding timely receipt of payments from the investments that they have made.
      BWR BBBmfs	Schemes with this rating are considered to have moderate degree of safety regarding timely receipt of payments from the investments that they have made.
      BWR BBmfs	Schemes with this rating are considered to have moderate risk of default regarding timely receipt of payments from the investments that they have made.
      BWR Bmfs	Schemes with this rating are considered to have high risk of default regarding timely receipt of timely receipt of payments from the investments that they have made.
      BWR Cmfs	Schemes with this rating are considered to have very high risk of default regarding timely receipt of timely receipt of payments from the investments that they have made.

      Note:

      • Modifier {"+" (plus) / "-"(minus)} can be used with the rating symbols for the categories AAmfs to Cmfs. The modifiers reflect the comparative standing within the category.
   2. Short term debt mutual fund schemes- debt mutual fund schemes that have an original maturity of/upto one year.

      BWR A1mfs	Schemes with this rating are considered to have very strong degree of safety regarding timely receipt of payments from the investments that they have made.
      BWR A2mfs	Schemes with this rating are considered to have strong degree of safety regarding timely receipt of payments from the investments that they have made.
      BWR A3mfs	Schemes with this rating are considered to have moderate degree of safety regarding timely receipt of payments from the investments that they have made.
      BWR A4mfs	Schemes with this rating are considered to have minimal degree of safety regarding timely receipt of payments from the investments that they have made.

      Note:

      • Modifier {"+" (plus)} can be used with the rating symbols for the categories A1mfs to A4mfs. The modifier reflects the comparative standing within the category.
6. CAPITAL PROTECTION ORIENTED FUND SCHEME
   1. Long term Capital Protection Oriented Fund Scheme Ratings - Schemes that have an original maturity exceeding one year.

      BWR AAA (SO)	Schemes with this rating are considered to have the highest degree of safety regarding timely receipt of payments from the investments that they have made.
      BWR AA (SO)	Schemes with this rating are considered to have high degree of safety regarding timely receipt of payments from the investments that they have made.
      BWR A (SO)	Schemes with this rating are considered to have adequate degree of safety regarding timely receipt of payments from the investments that they have made.
      BWR BBB (SO)	Schemes with this rating are considered to have moderate degree of safety regarding timely receipt of payments from the investments that they have made.
      BWR BB (SO)	Schemes with this rating are considered to have moderate risk of default regarding timely receipt of payments from the investments that they have made.
      BWR B (SO)	Schemes with this rating are considered to have high risk of default regarding timely receipt of timely receipt of payments from the investments that they have made.
      BWR C (SO)	Schemes with this rating are considered to have very high risk of default regarding timely receipt of timely receipt of payments from the investments that they have made.
      BWR D (SO)	Schemes with this rating are in default or are expected to be in default soon.

      Note:

      • Modifier {"+" (plus) / "-"(minus)} can be used with the rating symbols for the categories BWR AA (SO) to BWR C (SO). The modifiers reflect comparative standing within the category.
   2. Short term Capital Protection Oriented Fund Scheme Ratings - Schemes have an original maturity of/up to one year.

      BWR A1 (SO)	Schemes with this rating are considered to have very strong degree of safety regarding timely receipt of payments from the investments that they have made.
      BWR A2 (SO)	Schemes with this rating are considered to have strong degree of safety regarding timely receipt of payments from the investments that they have made.
      BWR A3 (SO)	Schemes with this rating are considered to have moderate degree of safety regarding timely receipt of payments from the investments that they have made.
      BWR A4 (SO)	Schemes with this rating are considered to have minimal degree of safety regarding timely receipt of payments from the investments that they have made.
      BWR D (SO)	Schemes with this rating are in default or are expected to be in default on maturity.

      Note:

      • Modifier {"+" (plus)} can be used with the rating symbols for the categories BWR A1 (SO) to BWR A4 (SO). The modifier reflects comparative standing within the category.
7. Issuer Ratings

   BWR AAA	Issuers with this rating are considered to have the highest degree of safety regarding timely servicing of debt obligations. Debt exposures to such issuers carry lowest credit risk.
   BWR AA	Issuers with this rating are considered to have high degree of safety regarding timely servicing of debt obligations. Debt exposures to such issuers carry very low credit risk.
   BWR A	Issuers with this rating are considered to have adequate degree of safety regarding timely servicing of debt obligations. Debt exposures to such issuers carry low credit risk.
   BWR BBB	Issuers with this rating are considered to have moderate degree of safety regarding timely servicing of debt obligations. Debt exposures to such issuers carry moderate credit risk.
   BWR BB	Issuers with this rating are considered to have moderate risk of default regarding timely servicing of debt obligations.
   BWR B	Issuers with this rating are considered to have high risk of default regarding timely servicing of debt obligations.
   BWR C	Issuers with this rating are considered to have very high risk of default regarding timely servicing of debt obligations.
   BWR D	Issuers with this rating are in default or are expected to be in default soon.

   Note:

   • {“+” (plus) “-” (minus)} modifiers can be used with BWR AA to BWR C The modifiers reflect the comparative standing for the same rating category.
   • BWR assigns Rating outlook for Ratings 'AAA' to 'B'. The Rating outlook indicates the direction a rating is likely to move over a period of time and may be classified as Positive, Stable or Negative.
   • The issuer rating is only an opinion on the general creditworthiness of the rated entity and not specific to any particular debt instrument.
8. Fixed Deposit Ratings Scale

   BWR AAA (BWR Triple A)	Instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such instruments carry lowest credit risk.
   BWR AA (BWR Double A)	Instruments with this rating are considered to have high degree safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.
   BWR A (BWR Single A)	Instruments with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such instruments carry low credit risk.
   BWR BBB (BWR Triple B)	Instruments with this rating are considered to have moderate degree of safety regarding timely servicing of financial obligations. Such instruments carry moderate credit risk.
   BWR BB (BWR Double B)	Instruments with this rating are considered to have moderate risk of default regarding timely servicing of financial obligations.
   BWR B	Instruments with this rating are considered to have high risk of default regarding timely servicing of financial obligations.
   BWR C	Instruments with this rating are considered to have very high risk of default regarding timely servicing of financial obligations.
   BWR D	Instruments with this rating are in default or are expected to be in default soon.

   Note:

   • Modifier {"+" (plus) / "-"(minus)} can be used with the rating symbols for the categories BWR AA to BWR C. The modifiers reflect the comparative standing within the category.
   • BWR Assigns rating outlook for Ratings BWR AAA to B. The Rating Outlook indicates the medium term direction that the rating may possibly move in; a rating is likely to move over period of time and may be classified as Positive, Stable or Negative.
   • BWR Speculative grade ratings are lower than BBB. As such , BWR BB, BWR B, BWR C or BWR D ratings are considered to have speculative characteristics. BWR’s lowest rating category of BWR D is normally event specific.
9. Security Receipts Ratings

   Recovery Rating	Implied Recovery	Rating Definition
   BWR RR1+	More than 150%	Present Value of expected recoveries is more than 150% of the face value of outstanding SRs.
   BWR RR1	More than 100% and upto 150%	Range of the present value of expected recoveries is more than 100% and upto 150% of the face value of outstanding SRs.
   BWR RR2	More than 75% and upto 100%	Range of the present value of expected recoveries is more than 75% and upto 100% of the face value of outstanding SRs.
   BWR RR3	More than 50% and upto 75%	Range of the present value of expected recoveries is more than 50% and upto 75% of the face value of outstanding SRs.
   BWR RR4	More than 25% and upto 50	Range of the present value of expected recoveries is more than 25% and upto 50% of the face value of outstanding SRs.
   BWR RR5	Upto 25%	Range of the present value of expected recoveries is upto 25% of the face value of outstanding SRs.

10. Expected Loss Ratings for Infrastructure Projects

    The rating scale for the expected loss rating is on the seven-point scale from BWR EL1 to BWR EL7, where BWR EL1 has the lowest expected loss and BWR EL7 has the highest expected loss.

    BWR EL 1	Instruments rated “EL 1” are considered to have the lowest expected loss, over the life of the instrument
    BWR EL 2	Instruments rated “EL 2” are considered to have very low expected loss, over the life of the instrument
    BWR EL 3	Instruments rated “EL 3” are considered to have low expected loss, over the life of the instrument
    BWR EL 4	Instruments rated “EL 4” are considered to have moderate expected loss over the life of the instrument
    BWR EL 5	Instruments rated “EL 5” are considered to have high expected loss, over the life of the instrument
    BWR EL 6	Instruments rated “EL 6” are considered to have very high expected loss, over the life of the instrument
    BWR EL 7	Instruments rated “EL 7” are considered to have highest expected loss, over the life of the instrument

28 June 2022