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Content

Credit Rating Overview Corporate Information Who We Are Vision Mission Our Pledge Our Expertise What We Do Corporate Debt Rating Bond Rating Financial Institutions Rating Structured Finance Rating General Insurance Rating Life Insurance Rating Issuer Rating Shariah Banking Rating (Islamic Financial Institutions) Rating Process Flow Board of Directors Advisory Board Internal Rating Committee External Rating Committee Management Team Rating Symbols Corporate Debt Rating Financial Institutions Rating Insurance Rating Bond Rating Islamic Capital Rating Market/Instrument Rating Issuer Rating Our Team/Inside ECRL

02 03

07

08 09 11 12 13 14 15

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02

Credit Rating Overview

AAA

A B-

Credit Rating is an informed, well-researched and thought out opinion on the likelihood of risk of default of a corporation (such as a financial institution, an insurance company, a non-banking corporation or a corporate entity). The assessment made can be that of an organizations risk of default or the likelihood of default on its financial obligations particular loan or debt. It is not an all-encompassing label of goodness of a corporation. It can be seen as fulfilling the need for more information in the market by providing current and timely rating based on a standardized scale as well as a response to the demand for more information by issuers and borrowers. According to the current law, public offers of all debt instruments are required to have a Credit Rating prior to being issued. This mandate includes bonds, debentures, commercial paper, structured finance and asset/mortgage backed securities. In addition, initial public offering of all banks and non-financial institutions require a credit assessment, along with public issues of shares by a corporate at a premium. Moreover to introduce BASEL II, the Bangladesh Bank has taken an initiative to improve debt quality of the corporates in Bangladesh by stressing the need for credit rating. We believe there is a huge potential for growth in this industry and look forward to serving our clients and investors with the highest quality of Risk Assessment and Credit Rating services.

A+ A ABBB AA A

03 01

Who We Are

Signing ceremony of technical collaboration agreement between Dr. Jamaluddin Ahmed, Chairman ECRL & Mr. Mohammad Abdullah, Chairman MARC on October 20, 2009.

Emerging Credit Rating Limited (hereinafter referred to as ECRL) was incorporated in March 2009, with the view to providing Credit Rating Services in Bangladesh. ECRL is a licensed credit rating agency and is committed to providing Bangladeshs credit market with independent and prospective credit opinions, research and data. In addition to our core rating business, in the future we hope to branch out into providing research data and analytical tools for assessing credit risk, and publish market-leading credit opinions. The company has been built on a foundation of local market experience, which spans throughout the corporate sector of the country. The company is headquartered in Dhaka, Bangladesh, with a view to expand to other financial districts all over the nation. ECRL has established a technical collaboration with a Malaysian rating company known as Malaysian Rating Corporation Berhad (MARC). Under the technical agreement, ECRL obtained technical support in relation to rating procedures and methodologies from MARC. ECRL obtained credit rating license from Securities and Exchange Commission (SEC) in June 2010 as per Credit Rating Companies Rules 1996 and also received Bangladesh Bank Recognition as an External Credit Rating Institution (ECAI) in October 2010. ECRL has already started its operation and completed around 20 rating assignments.

Malaysian Rating Corporation Berhad (MARC)

04

Vision and Mission

Vision To serve clients and investors through leading innovative processes for superior credit rating opinion. Our existence and foundation is built on the significance we place in investors and depositors, their protectionism, and our assurance to provide clarity and reliability in our rating judgment.

Mission To deliver credible, superior and quality credit rating opinions. Our mission is to establish ourself in the premier position as a credible and acceptable rating business entity in Bangladesh through the process of providing accurate and reliable credit rating to investors, issuers and bankers.

05 01

Our Pledge
We pledge to serve the Bangladesh credit market and consider investor-orientation to be our utmost priority. Transparency: Our open approach is based on the belief that investors should be aware and protected; ensuring transparency of the rated client while maintaining confidentiality at all stages. Leadership: Our aim is to consistently demonstrate credit leadership by producing relevant and timely research, by means of updating and refining our approach to rating a wide variety of securities. Responsiveness: Our analysts shall always be accessible and can provide quick responses to investors inquiries as well as produce timely ratings actions, market commentaries, methodologies and research. Relevance: We are committed to provide relevant information to all concerned parties, in order to represent a true and fair view for all ratings conducted. Perception: We are a national company with well-informed focus that reflects multiple points of view through our analysis and research.

04 06

Our Expertise
Board of Directors/ Promoters: Our board of directors include individuals renowned in their respective fields and some of the most distinguished as well as prominent individuals of the business world in Bangladesh. Combined these individuals possess a vast amount of experience in finance and accounting and are able to provide their views and advice during the credit rating process at ECRL ensuring that all ratings provided are therefore objective, transparent and up to the standards that benefit our company. Advisory Board: The ECRL has an advisory board consisting of high profiled personage, and business personalities. The objective of the Advisory Board is to provide rational guidance on a strategic level, so as to meet the goals of the company. Rating Committee (Internal and External): The members of Rating Committee are professionals who are experts in the field of Finance, Financial Management and Risk Assessment. They are well versed with international standards of operations. Their duties is to demand from the management team globalized acceptable operational values. Management Team: Our management team comprises of well respected and experienced individuals in the world of Finance & Risk Assessment. These individuals have numerous years of experience and are known throughout the corporate sector for their integrity, commitment and drive for the development of finance. The team is comprised of Accountants, Finance Specialists, Economists, Statisticians, IT Specialists and Researchers. The team received 600 hours of practical training on rating methodologies and practicality of performing credit rating from Malaysian Rating Corporation Berhad in KL, Malaysia. All the above information are available in our website: www.emergingrating.com.

BBB

A- BB

AA

A+

07 01 05

What We Do
Our rating services are extended to the following industry sectors: Corporate Debt Rating Assess the probability of timely repayment of principal and payment of interest over the term till the maturity of such debts. Bond Rating Assess the likelihood of timely repayment of principal and payment of interest over the term till the maturity of such debts. Financial Institutions Rating Assess the creditworthiness of financial institutions, i.e. commercial and investment banks, finance companies and discount houses. Structured Finance Rating Assess the likelihood of timely repayment of principal and payment of interest on debt securities issued by a corporate. General Insurance Rating Assess the credit-worthiness of general insurance companies, i.e. the financial security characteristics of the insurance company and its ability to meet its policy holder obligations. Life Insurance Rating Assess the ability of life-insurance companies to meet their policy holders obligations. Issuer Rating Assess of the ability of issuers to make timely payment on their debt obligations. Shariah Banking (Islamic Financial Institutions) Rating Assess the likelihood of timely repayment of instruments issued under Islamic financing contracts. ECRL is proud to be the first rating agency in Bangladesh to introduce a specific set of rating symbols and definitions designed exclusively for Islamic Financial Institutions.

04 06 08

Rating Process

Step : 01

Issuer appoints ECRL to undertake rating

Rating process begins

Step : 02

Issuer prepares/submits required data

Rating Process

Step : 03

Acquire information from issuer

Gathering Information

Step : 04

Analytical meetings

Presentations - Issuer & ECRL

Step : 05

Analysis & Evaluation by ECRL

Rating analysis begins

Internal Rating Committee In line with international practice, ECRLs internal Rating Committee decides on the ratings to be assigned. The committee comprises of MD/CEO,COO, Chief Rating Officer, Deputy Chief Rating Officers and all Portfolio head. The Internal Rating Committee will ensure complete independence and impartiality in the rating process. Step : 06 Rating Committee Meetings External Rating Review Committee ECRL also has an external Rating Review Committee comprising of prominent individuals who are experienced and well known in their respective elds. They come from diverse professional backgrounds and are respected for their impeccable integrity. The External Rating Review Committee does not assign or decide on the ratings, but ensures the ratings assigned by ECRLs Internal Rating Committee reect prudence and thoroughness of analysis.

Step : 07

Notication to the issuer

Step : 08

Appeal by Issuer & Reappraisal (if applicable)

Step : 09

Announcement of Rating Publication of Credit Rating Report

Step : 10

Analysis report

Step : 11

On-going Surveillance/Formal Annual Reviews

09 01 05 07

Board of Directors
Standing from left: Mr. N.K.A. Mobin, Mr. Ahsan Parvez Sitting from left: Mr. Md. Abu Sayeed Miah, Dr. Jamaluddin Ahmed, Mr. Md. Omar Farooque Bhuiyan

Md. Abu Sayeed Miah FCA Mr. Md. Abu Sayeed Miah is a senior fellow member of The Institute of Chartered Accountants of Bangladesh. He obtained his M. Com from Dhaka University. He has twenty years of experience as CFO of two reputed private group of companies as well as in a Swedish multinational company in Bangladesh. He is also the Director of Emerging Resources Ltd. Mr. Miah is also an associate Member of the Institute of Bankers, Bangladesh and served with the Bangladesh Bank and The Bangladesh Shilpa Bank (BSB) for some time. Mr. Miah is one of the sponsor directors of Emerging Credit Rating Ltd. (ECRL) Dr. Jamaluddin Ahmed FCA Dr. Jamaluddin Ahmed is one of the sponsor director of Emerging Credit Rating Ltd. (ECRL). He has many years of experience in the financial sector of Bangladesh and is a fellow member of The Institute of Chartered Accountants of Bangladesh. He is also a Director of Janata Bank Limited, GrameenPhone, Dhaka WASA and Power Grid Company of Bangladesh Ltd, Dhaka Stock Exchange Ltd and Bangladesh Telecommunication Company Ltd. He has taken a number of training courses in the power and energy sector and has completed assignments at numerous banks. He obtained a Ph.D in Accounting from the University of Wales in 1996. Since 1999 he has been a partner at Hoda Vasi Chowdhury & Co., an independent firm of Deloitte Touche & Tohmatsu. Currently he is the Chairman of the Board of Directors of ECRL.

04 06 10

Board of Directors

Md. Omar Farooque Bhuiyan Mr. Md. Omar Farooque Bhuiyan has 25 years of experience in the business sector of Bangladesh. He obtained his B.Com and M.Com in Accounting from the University of Dhaka. He currently serves as Managing Director of Atlanta Enterprise Overseas Ltd., and Alliance Power Systems. He has extensive knowledge in implementation of various Turnkey projects in Bangladesh. Mr. Bhuiyan is one of the sponsor directors of Emerging Credit Rating Ltd. (ECRL) N.K.A. Mobin FCA, FCS, CFC Mr. Mobin is one of the sponsor Directors of the Emerging Credit Rating Ltd (ECRL). He is also the Deputy Managing Director and Chief Operating Officer of the company. Professionally a Chartered Accountant and the fellow member of the Institute of Chartered Accountants of Bangladesh(ICAB) since 1992. He is also the fellow member of the Institute of Chartered Secretaries and Managers of Bangladesh (ICSMB) and a member of the Institute of Financial Consultants (IFC) of USA. He has an illustrious business career and prior to joining ECRL, he worked at the biggest multinational telecommunication Co. named Grameenphone Ltd. for 10+ years in various capacity of Director Finance, Director Administration, Director Projects and Company Secretary. Before joining Grameenphone in 1998, he worked in the multinational fertilizer company named Karnaphuli Fertilizer Co. Ltd. (KAFCO) for 5 years, the Swiss pharmaceuticals Co. named Novartis Bangladesh Limited for 3 years and in Swedish Match Co. named Dhaka Match Industries Co. Ltd. for 5 years. Ahsan Parvez FCA Mr. Ahsan Parvez is one of the sponsor directors of Emerging Credit Rating Ltd. (ECRL) and also the Managing Director & CEO of ECRL. He is a fellow member of The Institute of Chartered Accountants of Bangladesh (ICAB) and possesses a strong academic background. He obtained First class both in B.com (Honors) and Masters in Accounting with distinction and secured1st Class 1st Position from the University of Dhaka. Mr. Parvez also is an active OLSA member and secured 2nd position (commerce group) in the SSC examination from Dhaka Board. He has a prolific career of 25 years of services in Senior Management positions of three different Multinational companies namely Dhaka Match Industries Co. Ltd.(Swedish Match), Duncan Brothers BD. Ltd. and DHL Worldwide Express (Bangladesh) Ltd. Prior to joining ECRL he served as the National Financial Controller (CFO) at DHL.

11 01 05 07

Professor, Dept. of Pharmacy & Pharmacology & Former Vice-Chancellor University of Dhaka

Dr. Abul Kalam Azad Chowdhury

Advisory Board
Mr. Siddiqur Rahman Chowdhury
Former Finance Secretary, Government of Bangladesh Head of Research, Centre for Policy Dialogue (CPD)

Dr. Fahmida Khatun

Mr. Oddvar Hesjedal

Chief Executive Officer Grameenphone Ltd.

Former President & Managing Director, Bank Asia Limited

Mr. Syed Anisul Hoq

Mr. A.S.M. Shahidullah Khan

Managing Director, Media New Age Ltd.

Chief Editor and CEO, Maasranga Communications Ltd.

Mr. Syed Fahim Munaim

04 06 12

Internal Rating Committee (IRC)

Managing Director/CEO

Ahsan Parvez

NKA Mobin
DMD/COO

Mainul Islam Chowdhury

Chief Rating Officer

Deputy Chief Rating Officer

Arifur Rahman

Deputy Chief Rating Officer

Riyad Hossain

13 01 05 07

Dr. Abul Barkat

External Rating Committee (ERC)

Mr. Jagadish Chandra Shukla Das
Professor, Dept. of Information System University of Dhaka

Chairman, Dept. of Economics University of Dhaka

Mr. Chowdhury Abdul Quayum

Former Managing Director, National Credit & Commerce Bank Ltd.

Mr. A. H. M. Moazzem Hossain

Editor, The Financial Express

Dr. Muhammad Abdul Mazid

Former Chairman, National Board of Revenue (NBR)

Mr. Masud Isa

General Manager, The Business for Millennium Development Melbourne, Australia

Barrister M. Ziaul Hasan

Head of the Chamber, Hasan & Associates

Dr. Mahmood Osman Imam

Professor, Department of Finance, University of Dhaka

Mr. Habibullah Bahar

Former Executive Director, Bangladesh Bank

04 06 14

Management Team

Ahsan Parvez, FCA Mr. Ahsan Parvez is a fellow member of ICAB and was an Articled student of Rahman Rahman Huq, Chartered Accountants (Member firm of KPMG). Prior to joining ECRL he served as the National Financial Controller at DHL. He has a prolific career of 25 years of services in Senior Management positions. He worked as consultant and took active part in Accounting System Design and implementation of number of large companies. His considerable knowledge and vast experiences in the field of Financial Accounting, Financial planning & budgeting, Project Planning & implementation, Investment decision making, Credit management, Taxation, VAT, Foreign remittances and Company regulatory affairs brought great success in his long professional career. N.K.A. Mobin, FCA, FCS, CFC Mr. N K A Mobin is a fellow member of ICAB and was an Articled student of Rahman Rahman Huq, Chartered Accountants (Member firm of KPMG). Mr. Mobin has vast experience in the field of Finance, Accounting, Taxation, System design, implementation of computerized Accounting and Management (ERP) system in 3 organizations, Financial Planning, Budgeting, Internal Controls, Investment Decision, and Company Secretarial Practices. He has worked for arrangement of huge financing from local and international Banks and World agencies. He had extensive international training and management courses in AOTS Japan, Stockholm Business School, National University of Singapore and also in INSEAD in France. Mainul Islam Chowdhury, ACCA Mr. Mainul Chowdhury is the Chief Rating Officer of ECRL. He is a member of the Association of Chartered Certified Accountants (ACCA), UK and Associates of National Institute of Accountant, Australia. He obtained MBA from Institute of International Business & Research, a joint venture of HOCHSCHULE Bremen (University of Applied Science), Germany & Leeds Metropolitan University, UK and BSc (Hons) in Applied Accounting from Oxford Brookes University. Prior to joining ECRL, Mr. Mainul worked in Hoda Vasi Chowdhury & Co., an independent correspondent firm to Deloitte, Touche & Tohmatsu as Senior Manager. He also served as an auditor and financial analyst in various organizations in London, UK. Arifur Rahman, ACCA Mr. Arifur Rahman is the Deputy Chief Rating Officer of ECRL. He is a member of the Association of Chartered Certified Accountants (ACCA), UK. He obtained BSc(Hons) in Applied Accounting from Oxford Brookes University and BSc Engineering from Bangladesh University of Engineering and Technology (BUET). Prior to joining ECRL, Mr. Rahman worked in Hoda Vasi Chowdhury & Co., an independent correspondent firm to Deloitte, Touche & Tohmatsu as Senior Manager. He also worked in the senior Management roles in various accountancy firms and organizations in London, UK. Riyadh M. Hossain Mr.Hossain obtained MBA in Finance Wright State University, Ohio, USA. He has a number of years of financial management experience and worked as a manager (consultancy) at Hoda Vasi Chowdhury & Co. an independent firm of Deloitte Touche & Tohmatsu from 2008. He was also a Financial Analyst at EasyWay Investment Inc., in the USA. . He is currently the Deputy Chief Ratings Officer of ECRL.

15 01 05 07
CORPORATE DEBT RATING SYMBOL
LONG-TERM RATINGS ECRLs Long-Term Ratings are assigned to debt with maturities of more than one year. These debt ratings specifically assess the likelihood of timely repayment of principal and payment of interest over the term till the maturity of such debts. INVESTMENT GRADE AAA AA A BBB NON-INVESTMENT GRADE BB B C D While it is a non investment grade, this rating suggests that likelihood of default is considerably less than for lower-rated issues. However, there are significant uncertainties that could affect the ability to adequately service debt obligations. Indicates a higher degree of uncertainty, and therefore, greater likelihood of default. Adverse developments could negatively affect repayment of principal and payment of interest on a timely basis. High likelihood of default, with little capacity to address further adverse changes in financial circumstances. Payment in default. Indicates that the ability to repay principal and pay interest on a timely basis is extremely high. Indicates a very strong ability to repay principal and pay interest on a timely basis, with limited increment risk compared to issues rated in the highest category. Indicates the ability to repay principal and pay interest is strong. These issues could be more vulnerable to adverse developments, both internal and external, than obligations with higher ratings. The lowest investment grade category; indicates an adequate capacity to repay principal and pay interest. More vulnerable to adverse developments, both internal and external, than obligations with higher ratings.

Notes: Long-Term Ratings from AA to B may be modified by the addition of a plus (+) or minus (-) suffix to show relative standing within the major rating categories. Bank-guaranteed issues will carry a suffix (bg), corporate-guaranteed issues, a (cg), issues guaranteed by a financial guarantee insurer (FGI), an (fg), and all other supports, an (s) when such guarantees or supports give favourable effect to the assigned rating. SHORT-TERM RATINGS ECRLs Short-Term Ratings are assigned to specific debt instruments with original maturities of one year or less, and are intended to assess the likelihood of timely repayment of principal and payment of interest. INVESTMENT GRADE ECRL - 1 ECRL - 2 ECRL - 3 The highest category; indicates a very high likelihood that principal and interest will be paid on a timely basis. While the degree of safety regarding timely repayment of principal and payment of interest is strong, the relative degree of safety is not as high as issues rated ECRL-1. The lowest investment grade category; indicates that while the obligation is more susceptible to adverse developments (internal and external), the capacity to service principal and interest on a timely basis is considered adequate.

Notes: Short-Term Ratings will also carry a suffix (bg) for bank-guaranteed issues, (cg) for corporate-guaranteed issues, (fg) for FGI-guaranteed issues, and (s) for all other supports when such guarantees or supports give favorable effect to the assigned rating. Rating Outlook ECRLs Rating Outlook assesses the potential direction of the Corporate Debt Rating over the intermediate term (typically over a one to two-year period). The Rating Outlook may either be : POSITIVE NEGATIVE STABLE DEVELOPING which indicates that a rating may be raised; which indicates that a rating may be lowered; which indicates that a rating is likely to remain unchanged; or which indicates that a rating may be raised, lowered or remain unchanged.

04 06 16
FINANCIAL INSTITUTIONS RATING SYMBOL
LONG-TERM RATINGS Financial Institutions ratings are applied to commercial and investment banks, finance companies and discount houses. An institution rated AAA has an exceptionally strong capacity to meet its financial commitments and exhibits a high degree of resilience to adverse developments in the economy, and in business and other external conditions. These institutions typically possess a strong balance sheet and superior earnings record. An institution rated AA has a very strong capacity to meet its financial commitments, and is generally in a position to withstand adverse developments in the economy, and in business and other external conditions. These institutions typically possess a good track record and have no readily apparent weaknesses. An institution rated A has a strong capacity to meet its financial commitments but is somewhat more susceptible to adverse developments in the economy, and to business and other external conditions than institutions in higher-rated categories. Some minor weaknesses may exist, but these are moderated by other positive factors. An institution rated BBB has adequate capacity to meet its financial commitments. While some shortcomings are apparent, the institution is generally in a position to resolve these within an acceptable time frame. However, adverse developments in the economy and in business and other external conditions are likely to weaken its capacity to meet its financial commitments. An institution rated BB exhibits some obvious weaknesses in its operating practices and key financial indicators. The institutions financial performance has typically fallen below peer group standards. Although currently able to meet its financial commitments, the institutions financial capacity over the medium and longer terms is vulnerable to adverse developments in the economy, and in business and other external conditions. An institution rated B exhibits fundamental weaknesses in its operating practices and key financial indicators. Although currently able to meet its financial commitments, the institutions future financial capacity is regarded as weak and more vulnerable to adverse developments in the economy, and in business and other external conditions than that of institutions rated BB. An institution rated C has several immediate problems of a serious nature. The institutions ability to arrest further deterioration in its overall condition is doubtful and its capacity to meet its financial commitments is uncertain, without some form of strong external support. An institution rated D requires sustained external support without which its continued viability is in doubt. The rating indicates that the institution is likely to default on its financial commitments or that a default may have already occurred.

AAA

AA

BBB

BB

C D

SHORT-TERM RATINGS ECRLs Short-Term Ratings reflect the institutions capacity to meet its financial commitments due within one year. ECRL - 1 An institution rated ECRL-1 has a superior capacity to meet its financial commitments in a timely manner. Adverse developments in the economy, and in business and other external conditions are likely to have a negligible impact on the institutions capacity to meet its financial obligations. An institution rated ECRL-2 has a strong capacity to meet its financial commitments in a timely manner; however, it is somewhat susceptible to adverse developments in the economy, and in business and other external conditions. An institution rated ECRL-3 has an adequate capacity to meet its financial commitments in a timely manner. However, the institutions capacity to meet its financial obligations is more likely to be weakened by adverse changes in the economy, and in business and other external conditions than higher-rated institutions. An institution rated ECRL-4 has an inadequate capacity to meet its financial commitments in a timely manner. The rating indicates that the institution is likely to default on its financial commitments, without some form of strong external support. A default may have already occurred.

ECRL - 2 ECRL - 3

ECRL - 4

Rating Outlook ECRLs Rating Outlook assesses the potential direction of the Financial Institution Rating over the intermediate term (typically over a one to two-year period). The Rating Outlook may either be: POSITIVE NEGATIVE STABLE DEVELOPING which indicates that a rating may be raised; which indicates that a rating may be lowered; which indicates that a rating is likely to remain unchanged; or which indicates that a rating may be raised, lowered or remain unchanged.

17 01 05 07
INSURANCE RATING SYMBOL ( General & Life)
SECURE RANGE AAA AA A BBB An institution rated AAA has an exceptionally strong capacity to meet its financial commitments and exhibits a high degree of resilience to adverse developments in the economy, and in business and other external conditions. These institutions typically possess a strong balance sheet and superior earnings record. Insurance companies rated AA possess a very strong ability to meet their policy holders obligations. Their overall risk profile, while low, is not quite as favorable as for insurance companies in the highest rating category. Insurance companies rated A possess strong ability to meet their policy holders obligations but are somewhat more susceptible to adverse changes in economic and underwriting conditions than companies in higher-rated categories. Insurance companies rated BBB possess an adequate ability to meet their policy holders obligations. However, adverse changes in economic and underwriting conditions over time could affect their claims-paying ability.

VULNERABLE RANGE BB Insurance companies rated BB exhibit some weaknesses in their operating profile and / or financial condition. Currently able to meet their policy holders obligations, but claims-paying ability is regarded as marginal and cannot be assured over a long period of time. Such companies are vulnerable to adverse changes in economic and underwriting conditions. Insurance companies rated B exhibit fundamental weaknesses in their operating profile and / or financial condition. Currently able to meet their policy holders obligations, but claims-paying ability is regarded as weak. Such companies have limited capacity to withstand adverse changes in economic and underwriting conditions. Insurance companies rated C possess a very weak ability to meet their policy holders obligations. The continued capacity of these companies to meet their policy holders obligations is poor and highly dependent on favourable economic and underwriting conditions. Insurance companies rated D possess an inadequate ability to meet their policy holders obligations. Such companies require periodic external support or regulatory intervention without which their continued viability is in doubt. The rating indicates that a default may have already occurred or there is a high likelihood of default on their policy holders obligations.

Notes : Ratings from AA to B may be modified by the addition of a plus (+) or minus (-) suffix to show relative standing within the major rating categories.

SHORT-TERM RATINGS ECRLs Short-Term Ratings reflect the institutions capacity to meet its financial commitments due within one year. ECRL - 1 ECRL - 2 ECRL - 3 ECRL - 4 An institution rated ECRL-1 has a superior capacity to meet its financial commitments in a timely manner. Adverse developments in the economy, and in business and other external conditions are likely to have a negligible impact on the institutions capacity to meet its financial obligations. An institution rated ECRL-2 has a strong capacity to meet its financial commitments in a timely manner; however, it is somewhat susceptible to adverse developments in the economy, and in business and other external conditions. An institution rated ECRL-3 has an adequate capacity to meet its financial commitments in a timely manner. However, the institutions capacity to meet its financial obligations is more likely to be weakened by adverse changes in the economy, and in business and other external conditions than higher-rated institutions. An institution rated ECRL-4 has an inadequate capacity to meet its financial commitments in a timely manner. The rating indicates that the institution is likely to default on its financial commitments, without some form of strong external support. A default may have already occurred.

Rating Outlook ECRLs Rating Outlook assesses the potential direction of the Insurance Rating over the intermediate term (typically over a one to two-year period). The Rating Outlook may either be: POSITIVE NEGATIVE STABLE DEVELOPING which indicates that a rating may be raised; which indicates that a rating may be lowered; which indicates that a rating is likely to remain unchanged; or which indicates that a rating may be raised, lowered or remain unchanged.

04 06 18
BOND RATING SYMBOL
LONG-TERM RATINGS ECRLs Long-Term Ratings are assigned to debt with maturities of more than one year. These debt ratings specifically assess the likelihood of timely repayment of principal and payment of interest over the term to maturity of such debts. INVESTMENT GRADE AAA AA A BBB NON-INVESTMENT GRADE BB B C D While it is a non investment grade, this rating suggests that likelihood of default is considerably less than for lower-rated issues. However, there are significant uncertainties that could affect the ability to adequately service debt obligations. Indicates a higher degree of uncertainty, and therefore, greater likelihood of default. Adverse developments could negatively affect repayment of principal and payment of interest on a timely basis. High likelihood of default, with little capacity to address further adverse changes in financial circumstances. Payment in default. Indicates that the ability to repay principal and pay interest on a timely basis is extremely high. Indicates a very strong ability to repay principal and pay interest on a timely basis, with limited increment risk compared to issues rated in the highest category. Indicates the ability to repay principal and pay interest is strong. These issues could be more vulnerable to adverse developments, both internal and external, than obligations with higher ratings. The lowest investment grade category; indicates an adequate capacity to repay principal and pay interest. More vulnerable to adverse developments, both internal and external, than obligations with higher ratings.

Notes: Long-Term Ratings from AA to B may be modified by the addition of a plus (+) or minus (-) suffix to show relative standing within the major rating categories. Bank-guaranteed issues will carry a suffix (bg), corporate-guaranteed issues, a (cg), issues guaranteed by a financial guarantee insurer (FGI), an (fg), and all other supports, an (s) when such guarantees or supports give favourable effect to the assigned rating. SHORT-TERM RATINGS ECRLs Short-Term Ratings are assigned to specific debt instruments with original maturities of one year or less, and are intended to assess the likelihood of timely repayment of principal and payment of interest. INVESTMENT GRADE ECRL - 1 ECRL - 2 ECRL - 3 The highest category; indicates a very high likelihood that principal and interest will be paid on a timely basis. While the degree of safety regarding timely repayment of principal and payment of interest is strong, the relative degree of safety is not as high as issues rated ECRL-1. The lowest investment grade category; indicates that while the obligation is more susceptible to adverse developments, both internal and external, the capacity to service principal and interest on a timely basis is considered adequate.

Notes: Short-Term Ratings will also carry a suffix (bg) for bank-guaranteed issues, (cg) for corporate-guaranteed issues, (fg) for FGI-guaranteed issues, and (s) for all other supports when such guarantees or supports give favorable effect to the assigned rating. Rating Outlook ECRLs Rating Outlook assesses the potential direction of the Bond Rating over the intermediate term (typically over a one to two-year period). The Rating Outlook may either be: POSITIVE NEGATIVE STABLE DEVELOPING which indicates that a rating may be raised; which indicates that a rating may be lowered; which indicates that a rating is likely to remain unchanged; or which indicates that a rating may be raised, lowered or remain unchanged.

19 01 05 07
ISLAMIC FINANCIAL INSTITUTION RATING SYMBOL
LONG-TERM RATINGS ECRLs Long-Term Ratings are assigned to Islamic capital market instruments with maturities of more than one year. These ratings specifically assess the likelihood of timely payment of the instrument issued under the various Islamic financing contract(s). INVESTMENT GRADE AAAID AAID AID BBBID NON-INVESTMENT GRADE BBID BID CID DID Uncertainties exist that could affect the ability of the issuer to make payment on the instrument issued under the Islamic financing contract(s). Significant uncertainty exists as to timely payment on the instrument issued under the Islamic financing contract(s). Slight adverse developments could impair issuers ability to fulfill such obligation. Possesses a substantial risk of default, with little capacity to address further negative changes in financial circumstances. Failed to make scheduled payment on the instrument issued under the Islamic financing contract(s). Extremely strong ability to make payment on the instrument issued under the Islamic financing contract(s). Very strong ability to make payment on the instrument issued under the Islamic financing contract(s). light risk with degree of certainty for timely payment. Marginally lower than for instruments accorded the highest rating. Strong ability to make payment on the instrument issued under the Islamic financing contract(s). However, risks are greater in periods of business and economic stress than for instruments with higher ratings. Adequate ability to make payment on the instrument issued under the Islamic financing contract(s). Vulnerable to moderately adverse developments, both internal and external.

Notes : Long-Term Ratings from AAID to BID may be modified by the addition of a plus (+) or minus (-) suffix to show relative standing within the major rating categories. Bank-guaranteed issues will carry a suffix (bg), corporate-guaranteed issues, a (cg), issues guaranteed by a financial guarantee insurer (FGI), an (fg), and all other supports, an (s) when such guarantees or supports give favorable effect to the assigned rating. Subscript ID for Long-Term and Short-Term Ratings denotes Islamic Private Debt Security. SHORT-TERM RATINGS ECRLs Short-Term Ratings are assigned to non-TK denominated Sukuk issuances with original maturities of one year or less. These are intended to assess the likelihood of timely payment of the instrument issued under the various Islamic financing contract(s). INVESTMENT GRADE ECRL-1ID ECRL-2ID ECRL-3ID NON-INVESTMENT GRADE ECRL-4ID DID Vulnerable to non-payment of instrument issued under the Islamic financing contract(s). Capacity to make payment on the instrument is dependent upon favourable business, financial and economic conditions. Failed to make scheduled payment on the instrument issued under the Islamic financing contract(s). Extremely strong capacity to make timely payment on the instrument issued under the Islamic financing contract(s). Strong capacity to make timely payment on the instrument issued under the Islamic financing contract(s). Timeliness of payment is slightly susceptible to adverse changes in operating circumstances and economic conditions. Adequate capacity to make timely payment on the instrument issued under the Islamic financing contract(s). Moderately adverse changes in operating environment and economic conditions may weaken financial capacity to fulfil such obligation.

Notes : Short-Term Ratings will also carry a suffix (bg) for bank-guaranteed issues, (cg) for corporate-guaranteed issues, (fg) for FGI-guaranteed issues, and (s) for all other supports when such guarantees or supports give favourable effect to the assigned rating. Subscript ID for Long-Term and Short-Term Ratings denotes Islamic Private Debt Security. Rating Outlook ECRLs Rating Outlook assesses the potential direction of the Islamic Financial Debt Rating over the intermediate term (typically over a one to two-year period). The Rating Outlook may either be : which indicates that a rating may be raised; POSITIVE which indicates that a rating may be lowered; NEGATIVE which indicates that a rating is likely to remain unchanged; or STABLE which indicates that a rating may be raised, lowered or remain unchanged. DEVELOPING

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ISSUER RATING SYMBOL
ECRLS Issuer Ratings are opinions of the ability of issuers to make timely payment on their debt obligations. Issuer Ratings take into account the probability that the issuer will receive support from third parties such as its owners, authorities or external entity or entities. LONG-TERM RATINGS ECRLs Long-Term Ratings specifically assess the issuers capacity for timely repayment of principal and payment of interest with respect to long-term obligations with an original maturity in excess of one year. PRIME AAA AA A BBB NOT PRIME While it is non a prime investment grade, this rating suggests that likelihood of default is considerably less than for lower-rated issues. However, there are significant uncertainties that could affect the ability to adequately service debt obligations. Indicates a higher degree of uncertainty, and therefore, greater likelihood of default. Adverse developments B could negatively affect repayment of principal and payment of interest on a timely basis. C High likelihood of default, with little capacity to address further adverse changes in financial circumstances. Notes : Long-Term Ratings from AA to B may be modified by the addition of a plus (+) or minus (-) suffix to show relative standing within the major rating categories. BB SHORT-TERM RATINGS ECRLs Short-Term Ratings assess the issuers capacity for timely repayment of principal and payment of interest with respect to short-term obligations with an original maturity not exceeding one year. PRIME ECRL-1 ECRL-2 ECRL-3 NOT PRIME ECRL-4 DEFAULT RATINGS SD D Selective payment default on an obligation. General payment default or imminent default preceded by entry into debt restructuring, receivership, liquidation or other winding-up procedure. The lowest category; regarded as not prime and therefore possessing uncertain capacity to service short-term obligations. The highest category; indicates a very strong capacity for repayment of short-term obligations on a timely basis. While the degree of safety regarding timely repayment of principal and payment of interest is strong, the issuerss capacity for repayment of short-term obligations is not as high as issuers rated ECRL-1. The lowest prime category; indicates that while the issuer is more susceptible to adverse developments, both internal and external, its capacity to service short-term obligations on a timely basis is considered adequate. Indicates that capacity to repay principal and pay interest on a timely basis is extremely high. Indicates a very strong capacity to repay principal and pay interest on a timely basis, with limited incremental risk compared to issuers rated in the highest category. Indicates a strong capacity to repay principal and pay interest. Issuers in this rating category are vulnerable to adverse developments, both internal and external, than issuers with higher ratings. Indicates an adequate capacity to repay principal and pay interest. Issuers in this rating category are more vulnerable to adverse developments, both internal and external, than issuers with higher ratings.

Rating Outlook ECRLs Rating Outlook assesses the potential direction of the Rating over the reduce intermediate term (typically over a one to two-year period). The Rating Outlook may either be : which indicates that a rating may be raised; POSITIVE which indicates that a rating may be lowered; NEGATIVE which indicates that a rating is likely to remain unchanged; or STABLE which indicates that a rating may be raised, lowered or remain unchanged. DEVELOPING

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Corporate Profile December 2010