ICRA Ratings And Their Effect On Fixed Deposits

You must determine the risk involved before investing in debt instruments. Being aware of the risks enable you to take smarter investment decisions, ensuring that you earn higher returns on your investments.
Credit rating agencies can help you get the right information and guidance about the best financiers for your investments, before you choose to invest. ICRA, formerly known as the Investment Information and Credit Rating Agency of India Limited, is one such credit rating agency.
Established in 1991 by leading financiers, ICRA is an independent and professional Investment Information and Credit Rating Agency.

Role of ICRA ratings

ICRAs’ credit ratings help investors form an opinion on the ability of financiers to service their interest payment obligations and principal repayments on time. With ICRA’s ratings, issuers can enhance the marketability of the instrument, and help depositors and borrowers make an unbiased opinion on the relative safety of the sum on a debt instrument.

ICRA’s credit ratings can be beneficial in several ways. They are designed to:
     • Guide and educate institutional and individual investors or creditors
     • Enable borrowers and issuers to tap more resources from a wider range of the investing public, by accessing the financial and capital market
     • Promote transparency in financial markets
     • Make fund-raising processes easy for intermediaries
 

Rating criteria for ICRA

The asset quality reflects the financier’s ability to manage their asset portfolio, and the credit quality of their clients. ICRA’s ratings enable depositors to take the right investment decisions, by acting as an assurance to indicate the highest degree of safety for a fund.
These ratings are awarded on the basis of several factors, which include the information available, analysis made, and interactions with the management.
Here’s a look at ICRA’s rating system for fixed deposit ratings:

 
Rating Meaning
MAAA Highest credit quality
MAA High credit quality
MA Adequate credit quality
MB Inadequate credit quality
MC Risk-prone credit quality
MD Lowest credit quality
ICRA’s credit ratings are a measure of safety, using which you can get an assurance on whether the obligations will be repaid on time. You can also form an opinion on the probability of default on the instruments.

How ICRA ratings affect depositors

Fixed deposits are safe investment instruments that help you to earn stable returns over a fixed period. The lure of higher returns makes us choose financiers, offering higher interest rates. However, this can pose an additional risk, where depositors may also lose the money they invest.
However, with an unbiased credit rating by ICRA, you can determine the safety of your funds, and look for the right financier. You can also compare the ratings, and choose the best financier offering higher interest rates, while also possessing higher safety ratings by ICRA.

ICRA ratings for Bajaj Finance Fixed Deposit

Bajaj Finance Fixed Deposit has a MAAA (stable) rating from ICRA, which indicates the highest safety and lowest investment risk. Bajaj Finance FD also has a rating of FAAA/Stable from CRISIL, which makes it an ideal investment instrument.

With one of the highest safety ratings by CRISIL and ICRA, Bajaj Finance also offers several benefits to depositors. Some of these benefits include:
     • Higher interest rates – Bajaj Finance offers one of the highest interest rates in the market. In addition to the high interest rates offered, Bajaj Finance FD provides 0.25% higher interest rates to senior citizens
     • Minimum deposit amount of Rs. 25,000 – You can start investing with just Rs. 25,000
     • Flexible tenor – You can easily choose your tenor, when investing in a Bajaj Finance Fixed Deposit
     • Periodic payout options – When investing in a Bajaj Finance FD, you can choose the option to avail of periodic interest payouts along with the frequency of payouts as per your convenience

Benefit from assured returns, easily online application process and higher interest rates over a flexible tenor with Bajaj Finance Fixed Deposit.

Check our Customer Portal to read unbiased reviews of investors or directly contact Bajaj Finance Customer Care.

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