5.1.3 Qualifying ECAI Rating

For inclusion within the LMR, the grade/ratings of the issuer/guarantor/security should meet certain criteria. When these criteria are met, the Rating is deemed as Qualifying. The criteria are based mainly on the worst grade up to which the security can be included within the ratio. The criteria for an Issuer/Guarantor qualification and a Security rating qualification is specified in the following section.

The tables in this section list the criteria by which the security is Qualifying to be included in the LMR. For example: For a Security issued outside India, if the Grade is 1 or 2 in Long Term Ratings, then the security is Qualifying.

This implies that Long Term Grade 3, 4, 5, and 6 are not qualifying. The table which refers to an attribute called Qualifying rating, is marked Yes when either the Issue OR Issuer OR Guarantor is Qualifying.