Brickwork Ratings India Private Limited

 Annual Disclosures for the period from April 2017 to March 2018

(As required in Regulation 6 of SEBI Circular Ref: CIR/MIRSD/CRA/6/2010 dated May 3, 2010)

The various disclosures that are required under the regulations are given below:

  1. Rating policies, methodology and procedures in detail regarding solicited and unsolicited ratings
    1. Rating Process
    2. Ratings Policy
    3. Ratings Criteria:
      The ratings criteria are also given for different segments including: Large Corporates, Finance, Insurance, Pooled Funds, SME, State Governments, Infrastructure, Corporate Governance etc.
    4. Rating of bank Loans: The link has information regarding type of ratings assigned for bank loans, FAQs etc.
  2. Credit Rating History and Defaults
    1. Details of new credit ratings assigned during April 2017 to March 2018
      Annexure I
    2. Movement of credit rating of all outstanding securities during April 2017 to March 2018:
      1. Movement of each credit rating
        Annexure II
      2. Movement of each credit rating from investment grade to non-investment grade and vice versa
        Annexure III
      3. Movement of each credit rating that has moved by more than one notch
        Annexure IV A, IV B
    3. The history of credit rating of all outstanding securities for the period ending March 2018
      Annexure V
    4. On annual basis, the list of defaults separately for each rating category
      (e.g. AAA, AA, A, BBB, BB, B, C).This shall include the initial credit rating assigned by the CRA, month and year of initial rating, month and year of default, last credit rating assigned by the CRA before the issuer defaulted, comments of CRAs, if any.
      Annexure VI A, VI B
    5. On annual basis, the average one-year and three-year cumulative default rates (based on weighted average), for the last 5 years, separately for each following category.
      1. Each credit rating category (e.g. AAA, AA, A, BBB, BB, B, C), separately
        Annexure VII A
      2. Structured instruments and non-structured instruments, separately
        Annexure VII B
  3. Income
    1. Total Receipts from Rating Services : Rs. 74,86,60,505.00
      Total Receipts from Non Rating Services : Rs. 1,87,801.00
    2. The issuer wise percentage share of non-rating income of the CRA and its subsidiary to the total revenue of the CRA and its subsidiary from that issuer
      Rating Income :99.97% Non ratings Income: 0.03%
    3. Names of the rated issuers who along with their associates contribute 10% or more of total revenue of the CRA and its subsidiaries.
  4. Structured Finance Products:
    1. While publishing the ratings of structured finance products and their movements, a CRA apart from following all the applicable requirements in case of non-structured ratings shall also disclose the track record of the originator and details of nature of underlying assets while assigning the credit rating. The track record shall include a brief description of the financials of the originator, rating migrations to speculative categories and defaults.
      Brickwork Ratings is in compliance with the same.
    2. A CRA shall also disclose at least once in every six months, the performance of the rated pool, i.e., collection efficiency, delinquencies. A CRA shall also provide a detailed description of the underlying pools including ageing, Credit enhancements such as liquidity supports, first and second loss guarantee provided shall also be disclosed.
    3. Brickwork Ratings is in compliance with the same.

  5. Unsolicited Ratings:
    1. A CRA shall make the following disclosures apart from following other applicable requirements:
      1. The extent of participation by the issuer, its management, bankers and auditors in the credit rating process.
      2. The information used and its source in arriving at and reviewing the credit rating.
      3. There are no unsolicited ratings in the public domain by Brickwork Ratings.
    2. A CRA shall disclose annually
      1. All the unsolicited ratings carried out in the last three financial years
      2. Names of issuers, out of those mentioned in (i) above, which were given solicited rating in the last financial year
      Annexure VIII A, VIII B
  6. Shareholding Pattern of Brickwork Ratings as prescribed by stock exchanges for a listed company under clause 35 of Listing Agreement. Annexure IX
  7. Compliance Status of each provision of IOSCO Code of Conduct Annexure X