SME Credit Rating

An independent and unbiased opinion of an enterprise’s creditworthiness

SME Credit Rating

An independent and unbiased opinion of an enterprise’s creditworthiness

While SMEs form a crucial part of the Indian economy, their heterogeneity makes it difficult to evaluate them. A standardized rating system makes it easier to benchmark an entity’s parameters and validate claims. This in turn can provide bankers & lenders the crucial information that they require to finance an SME. 

However, a traditional credit rating evaluates financial instruments compared to large companies, which may not be an appropriate measure of credibility for an SME. This is where SMERA’s SME Credit Rating differs:

  • Provides a rigorous assessment of business & financial risks.
  • Measures business credibility on a separate benchmark, specific to SMEs.
  • Evaluates organizational parameters like operations, finance, technology & more. 


Risk

360° Rating Methodology

The SME Credit Rating Methodology includes a rigorous check of multiple risk factors. This provides an in-depth view of the rated enterprise and an accurate report to Buyers, Bankers and SMEs.

Financial Risk

Accounting Quality, Past Financials, Financial Flexibility

Management Risk

Related Experience, Qualification, Integrity and Governance

Business Risk

Industry Risk, Market Position, Operating Efficiency

Project Risk

Timely Execution, Risk of cost overrun

Execution Process

The 6 step Execution Process ensures that each aspect of the enterprise is taken into account, evaluated and measured appropriately.

1

Submission of Information & Documents

2

Site Inspection & Management Discussion

3

Detailed Analysis by Rating Analyst

4

Assignment of Rating by Rating Committee

5

Communication of Rating to the Rated Entity

6

Dissemination of Rating

SME Credit Rating scale

1

2

3

4

5

6

7

8

Highest

3

4

5

6

7

Lowest

Execution Process

The 6 step Execution Process ensures that each aspect of the enterprise is taken into account, evaluated and measured appropriately.

Submission of Information & Documents

Site Inspection & Management Discussion

Detailed Analysis by Rating Analyst

Assignment of Rating by Rating Committee

Communication of Rating to Rated Entity

Dissemination of Rating

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