RAM Ratings Lanka’ approach to the rating of financial institutions or “FIs” (i.e. commercial banks, merchant banks, finance companies and development banks) involves the analysis of both quantitative and qualitative factors. These factors are analysed to determine the level of risk in an FI’s ability to meet its financial obligations in a full and timely manner.

The CPR represents a company's fundamental strength and overall capacity to meet its financial obligations in a full and timely manner.

Corporate debt rating reflects the creditworthiness of private debt instruments issued by domestic corporations. The ratings reflect the relative risk of each corporation's issue with regard to full and timely payment of interest and principal.

This portrays the relative risk profile of an insurance company, in relation to its ability to meet policyholders’ obligations. As such, a CPA rating is the core rating of an insurer’s financial strength and long-term viability.

ABS are debt instruments which are usually backed by financial assets such as loans, bonds, lease receivables, credit card receivables and trade receivables. This reflects the likelihood of timely and full repayment of interest and principal in respect of the debt instruments.