CARE Advisory Research and Training Limited (CART) proposes to offer Solar Grading service to its clients. In the past this service was provided by our parent company (CARE Ratings Ltd.), this product has been transferred by CARE Ratings to CART in order to comply with regulatory guidelines.

Solar Grading indicates the relative level of creditworthiness of an entity, adjudged in relation to other entity. It is an issuer-specific Grading reflecting the overall general creditworthiness. It is a one-time assessment of credit risk of the rated entity in comparison with the other entity.

Staging in the Process for a Solar Grading Asssignment

Proposed Solar Grading Symbols & Definitions

SP 1A Highest Performance capability; Highest financial strength.
SP 1B Highest Performance capability; High financial strength.
SP 1C Highest Performance capability; Moderate financial strength.
SP 1D Highest Performance capability; Weak financial strength.
SP 1E Highest Performance capability; Very weak financial strength.
SP 2A High Performance capability; Highest financial strength.
SP 2B High Performance capability; High financial strength.
SP 2C High Performance capability; Moderate financial strength.
SP 2D High Performance capability; Weak financial strength.
SP 2E High Performance capability; Very Weak financial strength.
SP 3A Moderate Performance capability; Highest financial strength.
SP 3B Moderate Performance capability; High financial strength.
SP 3C Moderate Performance capability; Moderate financial strength.
SP 3D Moderate Performance capability; Weak financial strength.
SP 3E Moderate Performance capability; Very weak financial strength.
SP 4A Weak Performance capability; Highest financial strength.
SP 4B Weak Performance capability; High financial strength.
SP 4C Weak Performance capability; Moderate financial strength.
SP 4D Weak Performance capability; Weak financial strength.
SP 4E Weak Performance capability; Very weak financial strength.
SP 5A Poor Performance capability; Highest financial strength.
SP 5B Poor Performance capability; High financial strength.
SP 5C Poor Performance capability; Moderate financial strength.
SP 5D Poor Performance capability; Weak financial strength.
SP 5E Poor Performance capability; Very weak financial strength.

Validity:

Solar Grading awarded by CART will be valid for one year from the date of the grading, provided no significant changes/events occur during this period that could materially affect the business or financial parameters of the organization. The entity may approach CARE Advisory for review on happening of such event and CARE Advisory may review the grading for a predetermined fee.

Methodology:

The grading will be the outcome of overall credit risk assessment which can potentially affect the general creditworthiness of the entity. It takes into account various parameters including Promoter Track record, Technical Competence and Adequacy of Manpower, Quality of supplier and tie ups, Customer and O&M Network, Financial Strength and other points. The list is inclusive and not exhaustive.

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