RATING SCALE & DEFINITION

Alpha Rating employs a long-term rating scale and a short-term rating scale. A short-term rating is assigned when the financial commitment of less than one year is evaluated and a long-term rating is assigned for the financial commitment of one year or more.

Long Term Rating Scale and Definitions

AAA Issuers or issues rated AAA represents the strongest credit quality relative to other Bangladeshi obligors
AA Issuers or issues rated AA represents very strong credit quality relative to other Bangladeshi obligors
A Issuers or issues rated A represents above average credit quality relative to other Bangladeshi obligors
BBB Issuers or issues rated BBB represents average credit quality of Bangladeshi obligors
BB Issuers or issues rated BB represents slightly below average credit quality relative to other Bangladeshi obligors
B Issuers or issues rated B represents weak credit quality relative to other Bangladeshi obligors
CCC Issuers or issues rated CCC represent very weak credit quality relative to other Bangladeshi obligors
CC & C Issuers or issues rated CC and C both represent extremely weak credit quality relative to other Bangladeshi obligors. Rating of C will normally be assigned when an obligor is in technical default on certain commitments or obligations, but not yet in financial default.
D Issuers or issues rated D have failed to meet their rated financial commitment on time or when due

Long term rating from AA to B may be modified by the inclusion of a plus (+) or minus (-) sign to indicate relative strength within the rating category.

Short Term Rating Scale and Definitions

ST 1 Issuers rated ST 1 have the strongest ability to meet short term financial commitments relative to other Bangladeshi obligors
ST 2 Issuers rated ST 2 have an above average ability to meet short term financial commitments relative to other Bangladeshi obligors
ST 2 Issuers rated ST 2 have an above average ability to meet short term financial commitments relative to other Bangladeshi obligors
ST 3 Issuers rated ST 3 have an average ability to meet short term financial commitments
ST 4 Issuers rated ST 4 have a below average ability to meet short term financial commitments relative to other Bangladeshi obligors
ST 5 Issuers rated ST 5 have a well below average ability to meet short term financial commitments relative to other Bangladeshi obligors
ST 6 Issuers rated ST 6 have failed to meet their short term financial commitments

SMEs Rating Scale

ARSME 1 Issuers rated ARSME 1 represents the strongest credit quality relative to other Bangladeshi obligors in SME sector.
ARSME 2 Issuers rated ARSME 2 represents very strong credit quality relative to other Bangladeshi obligors in SME sector.
ARSME 3 Issuers rated ARSME 3 represents above average credit quality relative to other Bangladeshi obligors in SME sector.
ARSME 4 Issuers rated ARSME 4 represents average credit quality relative to other Bangladeshi obligors in SME sector.
ARSME 5 Issuers rated ARSME 5 represents slightly below average credit quality relative to other Bangladeshi obligors in SME sector.
ARSME 6 Issuers rated ARSME 6 represents weak credit quality relative to other Bangladeshi obligors in SME sector.
ARSME 7 Issuers rated ARSME 7 represents extremely weak credit quality relative to other Bangladeshi obligors in SME sector. Rating of ARSME-7 will normally be assigned when an obligor is in technical default on certain commitments or obligations, but not yet in financial default.
ARSME 8 Issuers rated ARSME 8 have failed to meet their financial commitment on time or when due.

Rating Outlook

Rating Outlook assesses the potential direction of the Debt Rating over the intermediate term (typically over a one to two-year period). The Rating Outlook may either be:

POSITIVE Which indicates that a rating may be raised.
NEGATIVE Which indicates that a rating may be lowered.
STABLE Which indicates that a rating is likely to remain unchanged.
DEVELOPING Which indicates that a rating may be raised, lowered or remain unchanged.