 "Illustration: Binay Sinha")
ICRA has launched a credit rating system to address the inherent uncertainties in infrastructure projects. The system is based on a new matrix that follows a linear rating scale to retain the probability of default approach in the current rating system and integrate the same with recovery prospects.
The expected loss (EL) quotient would be worked out through a combined rating approach. The highest rating of EL1 will be given to a project with the lowest EL range of below 1.25 per cent. There will be seven levels of rating. The EL will be calculated over a defined period and would
