What does the NCD rating mean?

In India, the rating of a non-convertible debenture (NCD) indicates the issuer's ability to fulfil its payment obligation in terms of:

• Interest payments at maturity.
• Maturity proceeds.

NCDs are issued by companies to raise funds from the public and offer a fixed rate of return. They are fixed-interest instruments, usually issued by highly rated companies in the form of a public issue to generate long-term capital appreciation.