Rating Symbols and Definitions

Long / Medium-term Instruments

Symbol	Rating Definition
CARE-NP AAA	Instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations, in Nepal. Such instruments carry the lowest credit risk.
CARE-NP AA	Instruments with this rating are considered to have a high degree of safety regarding timely servicing of financial obligations, in Nepal. Such instruments carry very low credit risk.
CARE-NP A	Instruments with this rating are considered to have an adequate degree of safety regarding timely servicing of financial obligations, in Nepal. Such instruments carry low credit risk.
CARE-NP BBB	Instruments with this rating are considered to have a moderate degree of safety regarding timely servicing of financial obligations, in Nepal. Such instruments carry moderate credit risk.
CARE-NP BB	Instruments with this rating are considered to have a moderate risk of default regarding timely servicing of financial obligations, in Nepal.
CARE-NP B	Instruments with this rating are considered to have a high risk of default regarding timely servicing of financial obligations, in Nepal.
CARE-NP C	Instruments with this rating are considered to have a very high risk of default regarding timely servicing of financial obligations, in Nepal.
CARE-NP D	Instruments with this rating are in default or are expected to be in default soon.

(i) Modifiers {"+" (plus) / "-"(minus)} can be used with the ratings symbols for the categories CARE-NP AA to CARE-NP C. The modifiers reflect the comparative standing within the category.

(ii) For Fixed Deposit Ratings '(FD)' suffix will be added and for RPS ratings ‘(RPS)’ suffix will be added.

Short-term Instrument

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

Modifier {"+" (plus)} can be used with the rating symbols for the categories CARE-NP A1 to CARE-NP A4. The modifier reflects the comparative standing within the category.

NCD	Nonconvertible Debentures
FD	Fixed Deposit
RPS	Redeemable Preference Shares

 

Symbol	Rating Definition
CARE-NP AAA (Is)	Issuers with this rating are considered to offer the highest degree of safety regarding timely servicing of financial obligations, in Nepal. Such issuers carry lowest credit risk.
CARE-NP AA (Is)	Issuers with this rating are considered to offer high degree of safety regarding timely servicing of financial obligations, in Nepal. Such issuers carry very low credit risk.
CARE-NP A (Is)	Issuers with this rating are considered to offer adequate degree of safety regarding timely servicing of financial obligations, in Nepal. Such issuers carry low credit risk.
CARE-NP BBB (Is)	Issuers with this rating are considered to offer moderate degree of safety regarding timely servicing of financial obligations, in Nepal. Such issuers carry moderate credit risk
CARE-NP BB (Is)	Issuers with this rating are considered to offer moderate risk of default regarding timely servicing of financial obligations, in Nepal.
CARE-NP B (Is)	Issuers with this rating are considered to offer high risk of default regarding timely servicing of financial obligations, in Nepal.
CARE-NP C (Is)	Issuers with this rating are considered to offer very high risk of default regarding timely servicing of financial obligations, in Nepal.
CARE-NP D (Is)	Issuers with this rating are in default or are expected to be in default soon.

Note:

(i) Modifiers {"+" (plus) / "-"(minus)} can be used with the rating symbols for the categories CARE-NP AA (Is) to CARE-NP C (Is). The modifiers reflect the comparative standing within the category. (ii) '(Is)' suffix will be added to indicates 'Issuer Rating'

Symbols	Rating	Definition
CARE-NP	AAA (Is)	Issuers with this rating are considered to offer the highest degree of safety regarding timely servicing of financial obligations, in Nepal. Such issuers carry lowest credit risk.
CARE-NP	AA(Is)	Issuers with this rating are considered to offer high degree of safety regarding timely servicing of financial obligations, in Nepal. Such issuers carry very low credit risk.
CARE-NP	A(Is)	Issuers with this rating are considered to offer adequate degree of safety regarding timely servicing of financial obligations, in Nepal. Such issuers carry low credit risk.
CARE-NP	BBB (Is)	Issuers with this rating are considered to offer moderate degree of safety regarding timely servicing of financial obligations, in Nepal. Such issuers carry moderate credit risk.
CARE-NP	BB(Is)	Issuers with this rating are considered to offer moderate risk of default regarding timely servicing of financial obligations, in Nepal.
CARE-NP	B(Is)	Issuers with this rating are considered to offer high risk of default regarding timely servicing of financial obligations, in Nepal.
CARE-NP	C (Is)	Issuers with this rating are considered to offer very high risk of default regarding timely servicing of financial obligations, in Nepal.
CARE-NP	D (Is)	Issuers with this rating are in default or are expected to be in default soon.

Note:

(i) Modifiers {"+" (plus) / "-"(minus)} can be used with the rating symbols for the categories CARE-NP AA (Is) to CARE-NP C (Is). The modifiers reflect the comparative standing within the category.

(ii) '(Is)' suffix will be added to indicates 'Issuer Rating'

Disclaimer CAREs ratings are opinions on credit quality and are not recommendations to sanction, renew, disburse or recall the concerned bank facilities or to buy, sell or hold any security or to invest in or withdraw funds from deposits. CARE has based its ratings on information obtained from sources believed by it to be accurate and reliable. CARE does not, however, guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. Most entities whose bank facilities/instruments/deposits are rated by CARE have paid a credit rating fee, based on the amount and type of bank facilities/instruments/deposits.