What does a C rating mean for a bond?

A C rating means the rating agency sees a very high risk of default regarding timely payment of interest and principal. It is the agency's opinion on the chance of default, not a guarantee.

Indian rating agencies registered with SEBI (CRISIL, ICRA, CARE Ratings, India Ratings, Acuité, Infomerics and others) use the same long-term scale, from AAA down to D. A rating of C means the rating agency sees a very high risk of default regarding timely payment of interest and principal. The agency's name comes first, so "CRISIL C" and "CARE C" are the same grade from different agencies.

A C rating is the last grade before default. It usually follows missed or delayed payments elsewhere, a liquidity crisis or a restructuring.

A "+" or "-" after the grade ranks a bond within the grade: AA+ is above AA, and AA- is below it. The rating comes with an outlook (Stable, Positive, Negative or Developing) that shows which way the agency expects it may move. Ratings change: check the agency's latest press release before investing, not the rating printed in an old offer document.

This page is for information only. It is not investment advice, a credit rating or a recommendation to buy, sell or hold any security. Facts are taken from the issuer's own documents and the sources linked on this page; check them with the source before investing.