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Rating Scale

Initial Public Offering Grading Scale

SMERA Initial Public Offering (IPO) grading is a five point grading scale. The issuers with strong fundamental relative to its peers are assigned highest score "SMERA IPO Grade 5" and the issuers with poor fundamentals relative to its peers are assigned lowest score i.e. "SMERA IPO Grade 1"

SMERA IPO Grade	Evaluation
SMERA IPO Grade 5	Strong fundamentals
SMERA IPO Grade 4	Above Average Fundamentals
SMERA IPO Grade 3	Average Fundamentals
SMERA IPO Grade 2	Below Average Fundamentals
SMERA IPO Grade 1	Poor Fundamentals

SMERA's Long Term And Short Term Rating Scale

Rating scale for Long-Term Instruments
SMERA ‘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
SMERA ‘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
SMERA ‘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.
SMERA ‘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
SMERA ‘BB’	Instruments with this rating are considered to have moderate risk of default regarding timely servicing of financial obligations
SMERA ‘B’	Instruments with this rating are considered to have high risk of default regarding timely servicing of financial obligations
SMERA ‘C’	Instruments with this rating are considered to have very high risk of default regarding timely servicing of financial obligations
SMERA ‘D’	Instruments with this rating are in default or are expected to be in default soon

Rating Scale for Short-Term Instruments
SMERA 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.
SMERA 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.
SMERA 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.
SMERA 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.
SMERA D	Instruments with this rating are in default or expected to be in default on maturity.

SMERA may apply '+' (plus) or '-' (minus) signs to its ratings assigned to indicate their relative standing within the category. SMERA may differentiate a debt instrument rating by a prefix to the rating assigned..

For Structured Obligations, SMERA assigns suffix '(SO)' to the rating symbol. The rating suffixed by the letters (SO), indicates presence of a credit enhancement which has been factored into the rating.

SMERA's MSME Rating Scale

SMERA's MSME rating scale consists of two parts, a composite appraisal/condition indicator and a size indicator. SMERA Rating categorises MSMEs based on size, so as to enable fair evaluation of each MSME amongst its peers. The SMERA’s MSME rating scale is specified below:

SMERA Rating	Rating Appraisal Indicator
MSME 1	Highest
MSME 2	High
MSME 3	Above Average
MSME 4	Average
MSME 5	Below Average
MSME 6	Inadequate
MSME 7	Low
MSME 8	Lowest

NSIC - D&B - SMERA Rating Scale

Rating Indicator
	Financial Strength
		High	Moderate	Low
Performance Capability	Highest	SE1A	SE1B	SE1C
	High	SE2A	SE2B	SE2C
	Moderate	SE3A	SE3B	SE3C
	Weak	SE4A	SE4B	SE4C
	Poor	SE5A	SE5B	SE5C

Greenfield Brownfield Rating Scale

Grading Scale	Explanation
Pr1	The company has the strongest likelihood of viable operations
Pr2	The company has very strong likelihood of viable operations
Pr3	The company has strong likelihood of viable operations
Pr4	The company has moderately strong likelihood of viable operations
Pr5	The company has an average likelihood of viable operations
Pr6	The company has low likelihood of viable operations
Pr7	The company has very low likelihood of viable operations
Pr8	The company has poor likelihood of viable operations

Micro Finance Institution (MFI) Rating Scale

Rating	In Descending Order
MF1	Highest
MF2	High
MF3	Above Average
MF4	Average
MF5	Below Average
MF6	Inadequate
MF7	Low
MF8	Lowest

MF 1 indicates Highest Credit Strength, Excellent Processes and Systems & Excellent Managerial Capabilities whereas MF 8 indicates Default. Other lower credit rating grades below MF 1 follow the detoriation in parameters like credit strength, processes and systems and managerial capabilities.

Green Rating Scale

Green Rating Scale	Description
SMERA-GREEN Rating 1	Highest
SMERA-GREEN Rating 2	High
SMERA-GREEN Rating 3	Moderate
SMERA-GREEN Rating 4	Below Average
SMERA-GREEN Rating 5	Low

Maritime Institution Grading Scale

Grading Scale

SMERA Maritime Grading is assigned on a five point scale i.e. from Grade 1 (indicating high quality) to Grade 5 (indicating poor quality).

SMERA MTI Grading Scale
Grade 1	The quality of education imparted by the graded course at the institute with respect to the course objectives as stated by DGS is outstanding.
Grade 2	The quality of education imparted by the graded course at the institute with respect to the course objectives as stated by DGS is very good.
Grade 3	The quality of education imparted by the graded course at the institute with respect to the course objectives as stated by DGS is good.
Grade 4	The quality of education imparted by the graded course at the institute with respect to the course objectives as stated by DGS is satisfactory.
Grade 5	The quality of education imparted by the graded course at the institute with respect to the course objectives as stated by DGS is poor