Each rating issued by ACER is backed by a published methodology, outlining the factors, weightages, and benchmarks considered in the assessment.
Clear criteria. Consistent evaluation. Reliable outcomes.
Ratings criteria are structured, pre-defined frameworks that outline the key parameters used to evaluate credit risk. They ensure every rating decision is objective, consistent, and aligned with industry standards.
We update our criteria periodically to reflect market dynamics, regulatory changes, and evolving best practices.
Evaluates operational performance, industry risk, financial strength, and governance for manufacturing and service companies.
Assesses capital adequacy, asset quality, earnings, and risk management.
Focuses on cash flow predictability, contractual arrangements, and sponsor strength.
Examines asset pool quality, credit enhancement, and transaction structure.
Considers fiscal metrics, political stability, and external balances.
| Parameter | Definition | Example Metrics |
|---|---|---|
| Leverage & Coverage | Measures debt burden and repayment ability | Debt/Equity, DSCR, Interest Coverage |
| Profitability | Earnings performance | EBITDA Margin, ROCE |
| Liquidity | Cash flow adequacy | Current Ratio, Operating Cash Flow |
| Industry Position | Competitive strength | Market Share, Pricing Power |
| Governance & Transparency | Management integrity and disclosure quality | Audit Quality, Board Structure |
Corporate Credit Rating Methodology
Updated July 2025
Banking Sector Rating Methodology
Updated May 2025
Infrastructure Project Finance Methodology
Updated March 2025
Structured Finance Criteria
Updated January 2025
Sovereign & Public Sector Methodology
Updated October 2024
In line with SEBI guidelines, all methodologies are publicly available and accessible. ACER ensures complete transparency by publishing both current and historical versions of our criteria.
