Rating Watch

Rating Watch and its implications

A rating watch indicates that there is high probability of the rating movement in the short term in respect of credit implications of which are either unclear or not fully ascertainable immediately. Such events include a proposed change in ownership control, a merger, a demerger, an acquisition, a sudden regulatory development/attitude towards government policy, a force majeure event, proposed equity infusion, proposed refinancing, proposed asset monetization, material deviation in performance vis-à-vis expectations and so on.

The “Rating Watch” period is typically used to gather further information and/or subject the information to further analysis. A rating may also be placed on "Rating Watch" where the rating implications of the event might already be clear, but where a triggering event–-example, a shareholder or a regulatory approval–-might be awaited. The final rating action is taken when the awaited milestone is reached. A rating may also be placed on "Rating Watch" if there is a methodology change whose implications on the rating might be in the process of being evaluated.

CRISL places its ratings on “Rating Watch” under the following three circumstances:

• “Rating Watch with Positive Implications”, which indicates that once the credit uncertainty gets resolved, the rating is more likely to be upgraded
• “Rating Watch with Negative Implications”, which indicates that once the credit uncertainty gets resolved, the rating is more likely to be downgraded
• “Rating Watch with Developing Implications”, which indicates that the likely direction of the rating change is unascertainable based on the available information

Once the desired information is received and/or evaluation exercise is completed, a review note is placed before the Rating Committee (RC) which may, after detailed examination of the facts, decide to either continue the rating on “Rating Watch” or remove the “Rating Watch” and assign an appropriate rating. It may be noted that placing ratings on “Rating Watch” does not always imply an imminent change in rating.

CRISL has decided recently to place the following ratings under WATCH under the category “Rating Watch with Developing Implications”

December 04, 2024

Rating Watch:

Based on the updated information we have on Export Import Bank of Bangladesh PLC. CRISL has decided to put the existing rating of the bank under rating watch with a negative outlook. The negative outlook indicates that CRISL may downgrade the bank rating through an in-depth review.

December 26, 2024

SL No.	Name of the Entities	Rating
1	Aftab Bahumukhi Farms Limited	A, ST-3, Stable
2	Aftab Feed Products Ltd	AA-, ST-2, Stable
3	Aftab G. P. Farms Limited	BBB+, ST-3, Stable
4	Aftab Hatchery Limited	A+, ST-3, Stable
5	Aftab Hatchery Northern Ltd	BBB+, ST-3, Stable