Page 112 - ACCESS ANNUAL REPORT 2019

NOTES (continued)
A a o nts are in tho sands o hana edis n ess otherwise stated Financia ris anage ent contin ed
redit ris anage ent contin ed
E pos re to credit ris on oans and advances
Risk grading
A ris ratin is a rade iven to loans and advances or roup o loans , re ectin its uality. he ratin s are either stated in num ers or as a description rom one 1 to ei ht .
he Group’s internal ratin scale is as ollows
Description Ratings
Characteristics of credits
S perior redits
1
hey are credits that have overwhe ming capacity to repay o igations he usiness has ade uate cash ow and high ua ity revenue from continuing usiness t has strong e uity when re ated to the ua ity of its assets with track record of at east consistent profit for three years u cash co atera ised credits are c assified as uperior redits
Above average Credits
2
hese have ma ority of attri utes of superior credits ut may have weaknesses in not more than two of the characteristics of superior credits hese weaknesses shou d not impair repayment capacity of the orrower
Acceptab e redits
3
verage credits have most of the attri utes of ove verage redits ut may have one or more of the fo owing weaknesses which if not c ose y managed cou d impair repayment capacity of the orrower ow capita isation and e uity ase, short track record, ow market share, price contro on its products and high y cyc ica demand
atch ist redits Other Loans E ceptiona Mentioned (OLEM)
4
his category app ies to e isting credits that have shown signs of deterioration ecause they have we defined weaknesses which cou d a ect the a i ity of the orrower to repay mmediate corrective actions are set in motion to avoid comp ete oss
S bstandard and Do bt
5
his rate is app ied where a strong dou t e ists that fu repayment of principa and interest wi occur he e act e tent of the potentia oss is not however certain at the time of c assification ome attri utes are interest and principa past due for 90 days or more, orrower has recorded osses consistent y for 2 years, orrowers net worth is gross y eroded due to ma or usiness fai ure or disaster and security o ered has deteriorated
Bad and Lost

his app ies when a or part of the outstanding oans are unco ecti e ased on present conditions ttri utes are principa and interest overdue and unpaid for more than 1 0 days, ega processes does not guarantee fu recovery of outstanding de t, c ients re uest for a waiver of part of interest accrued has een granted, orrower is under receivership or in the process of i uidation, orrower has a sconded and or documentation is shoddy or incomp ete to pursue recovery through ega means
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