Serving the Islamic Ummah

Rating Scale



IIRA communicates its opinions on ratings to investors and other stakeholders through symbols. The definitions of ratings are explained in this document.

Rating Symbols & definitions

Gradations of creditworthiness or the level of compliance is indicated by rating symbols, with each symbol representing a group in which the credit characteristics or level of compliance are broadly the same. The symbols are specific to the rating in question and are provided with accompanying definitions in this document.

International Scale ratings and National Scale ratings

International scale ratings express the ability of an entity to meet its international obligations in foreign currency. These ratings are largely capped by the sovereign ceiling and are comparable in the global context.
Local currency ratings on an international scale express the ability of an entity to meet its obligations in its local or domestic currency and are usually higher than foreign currency ratings.
National scale ratings express the ability of an entity to meet its domestic obligations in its local or domestic currency, within the national context. These ratings assume the local sovereign to be the best risk in the domestic context and anchored at AAA.


In the event that IIRA deems that, as a result of lack of cooperation with regard to the provision of information or for any other reason, it is not possible to assess the current status of the assigned rating will be suspended.


Rating(s) are withdrawn in the following situations:

a) Non-renewal / cancellation of the rating agreement

b) Maturity of a rated issue

c) Cessation of an entity for any reason

Rating Outlooks

The three outlooks 'Positive', 'Stable' and 'Negative' qualify the potential direction of the assigned rating(s). An outlook is not necessarily a precursor of a rating change.

Rating Watch-list

IIRA places entities and issues on 'Watch-list' when it deems that there are conditions present that necessitate re-evaluation of the assigned rating(s). A 'Watch-list' announcement means that the status of the assigned rating(s) is uncertain and an event or deviation from an expected trend has occurred or is expected and additional information is necessary to take a rating action.

Changes in rating

As a result of changes in creditworthiness of the issuers or variations in the compliance level of entities, the credit or compliance ratings undergo changes through out the life of the issue. Such rating changes indicate that the IIRA has observed alteration in creditworthiness or compliance level of the issue or issuer and the previous rating is not fully reflecting the quality (investment or compliance as the case may be) of the issue or issue due to the observed alterations.

Confirmation of a Rating

A confirmation of the rating occurs when a rating is removed from Watchlist.

Reaffirmation of a Rating

Reaffirmations mean that the current ratings will continue to remain in force without an upgrade or a downgrade. Reaffirmations may occur due to a review, release of new information by the issuer, major market event or along with an outlook change. There may be other situations in which ratings are reaffirmed.

Defination Of Default

Default is defined as an issuer’s failure to meet its obligation on time. The circumstances leading to default may be obligor’s unwillingness or inability to pay.

Ratings Validity – Time Horizon

Short-term ratings provide an estimation of repayment capacity over a future time horizon of up to one year.

Long-term ratings indicate repayment capacity over a 2-3 year time horizon.