Onicra Credit Rating Agency

Rating Methodology

The basic methodology followed to formulate and plan the mathematical model for rating is consistent across individuals and corporates. It follows a five step process.

The first step is the definition of the objective- which is the entity that needs to be rated.
This is followed by collation of all the high level parameters that affect the entity. This high level parameter collation is done using a mix of market analysis, in-house expertise, primary and secondary research.
Once the parameters are identified, Onicra follows a top-down approach of parameter decomposition. This simply entails decomposing the parameters into the sub-parameters upon which they are dependent at several levels, until we reach independent and quantifiable parameters.
These parameters are input into a mathematical model and analyzed to ensure that the results are in line with actual behavior.
Simultaneously, the organization’s research groups are constantly monitoring and keeping checks on various other parameters, both environmental and economic to keep the model being worked on, relevant, fresh and
up-to-date with the fast changing financial and economic scene.

Process

Request received for rating

Pre-Analysis and
Document Collection

Assignment finalized and detailed questionnaire prepared

Customer and referral
feedback collected

Indepth Analysis of Business Unit

Site Visit scheduled and
Data Collected

Draft Report and
Rating proposal

Report evaluation by
Rating committee

Final evaluation and
Rating given