Fee Structure

Fee Structure Africa

CARE Ratings Africa Private Limited (CRAF) follows a transparent pricing mechanism for undertaking rating of various products. The fee structure is usually computed as a percentage of the debt amount to be rated.

The general nature of compensation arrangements that CRAF has with rated entities is as follows:

1. Before crystallising any rating agreement, the applicable fees are finalised with the entity to be rated.
2. The credit rating fees generally have two components: Initial Rating Fee (IRF) and Annual Surveillance Fee (ASF). The IRF is charged at the time of assignment of the initial rating, and the ASF is charged during the period that the rating remains outstanding.
3. While the fees are generally correlated to the debt to be rated, they also depend upon the industry type, debt facility break-up, and complexity of the assignment.
4. Only the CEO and the Business Development team are involved in the finalisation of the fees for rating assignments.
5. Rating analysts are not part of the mandate origination and fee discussions. Therefore, the fees charged for rating assignments are not disclosed to the rating analysts.
6. The amount of rating fees is not a determinant of rating analysis or rating outcome by CARE Ratings Africa in any manner whatsoever.
7. CARE Ratings reserves the right to charge rating fees within the general nature of compensation arrangements with rated clients.
8. In certain cases, CARE Ratings may be appointed and compensated for rating assignments by investors or parties other than the issuer.

Initial Rating Fee

• Bonds/Debentures: 0.15% of the issue amount.
• Commercial Paper: 0.15% of the issue amount.
• Issuer Rating: 0.15% of all outstanding debts as on the last balance sheet date.
• Bank Facilities: 0.15% of the sanctioned amount.
• Fixed Deposits: 0.15% of the amount of Fixed Deposits.
• SME Gradings:
  • MUR 75,000 (up to MUR 20 million turnover)
  • MUR 100,000 (MUR 20 million to MUR 35 million turnover)
  • MUR 125,000 (greater than MUR 35 million turnover)

Annual Surveillance Fee

• FD/Debentures/CP/Bank Facilities: 0.075% of the amount outstanding under the rated instrument.
• Issuer Rating: 0.075% of the amount outstanding under the rated instrument.

Credit Reports

Fees applicable will depend on the scope and coverage of each report and can be obtained on specific request.

Notes

• Rating fees are computed separately for each instrument issued.
• Issuers are liable to pay rating fees, regardless of whether they accept CRAF's rating or not.
• Full rating fee is to be paid upfront.
• CRAF sometimes offers discounts on the above fee structure, considering various factors such as the quantum of debt to be rated, group structures, existing relationships, and market dynamics.
• VAT will be charged extra as applicable.
• CRAF reserves the right to make changes to the fee structure at any time.
• CRAF does not charge any fee to its clients or investors for disseminating/publishing ratings and press releases on its website www.careratingsafrica.com .