Can you explain the rating rationale for giving "B- Stable" for bank loans? Does EOL have a negative impact on rating? Does fresh loan sanctions positively impact rating, or does positive rating is primarily required for sanction of fresh loans from existing banks? How can rating be improved? Kindly explain
1 Replies
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 29 August 2017
I dont have much Idea of the rationale but important points are they look at the cash flow your operating expenses should be met only from operating activities and not from Investing or Financing activities for giving a good rating this is ome parameter
another parameter is there should not be default in servicing the loan that is you should not have paid any penal charges for any non compliance
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