All security documentation should be in place.Credit facilities fully covered by the guarantee of a top tier local Bank.Aggregate score of 85 or greater based on the risk grade score sheet.3.Acceptable- (ACCPT)-3These borrowers are not as strong as GOOD Grade borrowers, but still demonstrateconsistent earnings, cash flow and have a good track record.Borrowers have adequate liquidity, cash flow and earnings.
Credit in this grade would normally be secured by acceptable collateral (1st charge overinventory/ receivables/ equipment/ property).Acceptable management.Acceptable parent/ sister company guarantee.Aggregate score of 75-84 based on the Risk Grade Score.4.Marginal/ Watch list- (MG/WL)-4This grade warrants greater attention due to conditions affecting the borrower, theindustry or the economic environment.These borrowers have an above average risk due to strained liquidity, higher thannormal leverage, thin cash flow and/ or inconsistent earnings.Weaker business credit & early warning signals of emerging business credit detected.The borrower incurs a loss.Loan repayments routinely fall past due.Account conduct is poor, or other untoward factors are present.Credit requires attention.Aggregate Score of 65-74 based on the Risk Grade Score Sheet.5.Special Mention-(SM)-5This grade has potential weaknesses that deserve management’s close attention. If leftuncorrected, these weaknesses may result in a deterioration of the repayment prospects ofthe borrower.Serve management problems exist.Facilities should be downgraded to this grate if sustained deterioration in financialcondition is noted (consecutive losses, negative net worth, excessive leverage).An aggregate score of 55-64 based on the Risk Grade Score Sheet.6.Substandard-(SS)-6
Financial condition is weak and capacity or inclination to repay is in doubt.These weaknesses jeopardize the full settlement of loans.Bangladesh Bank criteria for sub-standard credit shall apply.An Aggregate Score of 45-54 based on the Risk Grade Score Sheet.7.Doubtful-(DF)-7Full repayment of principal and interest is unlikely and the possibility of loss isextremely high.However, due to specifically identifiable pending factors, such as litigation, liquidationprocedures or capital injection, the asset is not yet classified as bad & loss.Bangladesh Bank criteria for doubtful credit shall apply.An Aggregate score of 35-44 based on the Risk Grade Score Sheet.8.Bad & Loss-(BL)-81.Credit of this grade has long outstanding with no progress in obtaining repayment or onthe verge of wind up/liquidation.2.Prospect of recovery is poor and legal options have been pursued.3.Proceeds expected from the liquidation or realization of security may be awaited. Thecontinuance of the loan as a bankable asset is not warranted, and the anticipated lossshould have been provided for.