What is the NCD Rating?

A non-convertible debenture (NCD) rating is a measure of an issuer's ability to fulfil its financial obligations, such as timely payment of interest and repayment of principal.

The NCD rating scales range from A to D with A denoting highest degree of safety and very low risk and D denoting default.

The NCD ratings also include outlook ratings like Positive, Negative or Stable indicating the likelihood of change in rating in the medium term. The outlook ratings are assigned to credit ratings from high to moderate degree of safety and not to ratings with default risk (i.e. from BB to D).

Credit rating agencies regularly evaluate NCDs to assign credit ratings.