The Bank Line of Credit Rating service from ICRA entails evaluating the capability of an issuer to timely meet its debt obligations against a specific line of credit, in the light of the relevant terms, conditions and covenants. ICRA considers all relevant factors that have a bearing on the future cash generation and debt servicing ability of the issuer. These factors include: industry characteristics, regulations, competitive position of the issuer, operational efficiency, management quality, commitment to new projects and other associate companies, and funding policies of the issuer. A detailed analysis of past financial statements is made to assess performance under “real world” business dynamics. Estimates of future earnings over the next three to five years under various sensitivity scenarios are drawn up and evaluated against the claims and obligations that would require servicing. Primarily, it is the relative comfort on the level and quality of the issuer’s cash flows to service obligations that determines its rating.