SME Credit Rating
SME Credit Rating
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.
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