1. QUALITY RATING FOR MUDHARABAH AND MUSYARAKAH
BUSINESS PROSPECT
CURRENT SPECIAL MENTION SUBSTANDARD DOUBTFUL LOSS
Business growth
potential Customer’s business growth potential is favorable Customer’s business growth potential is limited Customer’s business shows an extremely limited growth potential or does not grow
Customer’s business activities slow down
Customer’s business continuity to recover is extremely in doubt and most likely to close down Market condition
and customer’s
position in
competition
Market is stable and not influenced by changes in economic conditions Competition is limited, including firm position in market
Position in market is favorable, not strongly influenced by changes in economic conditions Market share is comparable with that of competitors
Market is influenced by changes in economic conditions
Position in market is fairly favorable but many competitors occur, but able to recover if applies new business strategy
Market is significantly influenced by changes in economic conditions Business competition is extremely tight and company operations face serious problems
Losses market in line with deteriorating economic conditions
Management quality
and manpower case Management is extremely favorable (independent, experienced, and capable)
Management is favorable Management is fairly favorable (independent, experienced, but not capable enough)
Management is less experienced
Management is extremely weak
Manpower is adequate and no record concerning any dispute or strike
Manpower is fairly adequate, dispute or strike recorded bringing immaterial impacts and has been well settled, that, in general, relationship between the management and employees is fairly favorable
Manpower is excessive and dispute or strike occur bringing fairly material impacts on business activities
Manpower is so excessive in a large number that it may bring unrest, and dispute or strike occur bringing fairly material impacts on business activities
There is a strike which is difficult to settle down, with extremely material impacts on business activities
Support from group
or affiliated parties Affiliated group are stable and support companies or the business
Affiliated companies or group are stable and do not have difficult impacts on customer
Relationship with affiliated companies or group begins to bring difficult impacts on customer
Affiliated companies or group have brought difficult impacts on customers
Affiliated companies or group bring extremely difficult impacts on customers Efforts made by
customer to
preserve the living environment (for large-scale customers with important impacts on the living environment)
Efforts to manage the living environment are favorable and have met at least the minimum requirements as stipulated in applicable laws and regulations
Efforts to manage the living environment are less favorable and have not met minimum requirements as stipulated in applicable laws and regulations
Efforts to manage the living environment are less favorable and have not met minimum requirements as stipulated in applicable laws and regulations, with fairly material divergence
Company has not made significant efforts to manage the living environment or it has made the efforts but has not met requirements as stipulated in applicable laws and regulations, with material divergence
Company has not made significant efforts to manage the living environment or it has made the efforts but has
not met minimum
requirements as stipulated in applicable laws and regulations, and potential to be prosecuted in court
CUSTOMER PERFORMANCE
CURRENT SPECIAL MENTION SUBSTANDARD DOUBTFUL LOSS
Profit earnings Profit earnings are equal or higher than targetted; and
Profit earnings are fairly stable but potential to decrease
Profit earnings are lower than targetted
Profit earnings are extremely low or negative
Profit earnings are stable Operational losses are financed by selling of assets
Customer is not capable to meet all liabilities and business may not be maintained
Capital structure Capital is strong with a lower debt than capital
Capital is fairly favorable and owner is capable to add capital when necessary
Debt to capital ratio is fairly high
Debt to capital ratio is high Debt to capital ratio is extremely high
Liquidity and cash
flow Liquity capital are strong and working
Liquidity and working capital are generally favorable
Liquidity is inadequate and working capital is limited
Liquidity is extremely low Faces difficulties in liquidity Analysis on cash flow
shows customer’s capability to meet obligations to pay financing and profit share without any support of additional funds
Analysis on cash flow shows that although customer is capable to meet obligation to pay financing and profit share, there is an indication of certain difficulties which, if not settled, may influence future payments
Analysis on cash flow shows customer’s capability only to pay the portion of profit share and/or part of installment
Analysis on cash flow shows incapability in payment of financing installment and portion of profit share
Analysis on cash flow shows customer’s incapability to cover production costs
Extension of financing is used to cover up financial difficulties
New financing is used to cover due liabilities
New financing is used to cover operational losses Sensitivity to
market risk Amount sensitive to fluctuations of of portfolio foreign currency exchange rate is relatively low or has been well hedged
Some portofolio are sensitive to foreign currency exchange rate but persistently under control
Business activities are influenced by fluctuations in foreign currency exchange rate
Business activities are threatened by fluctuations in foreign currency exchange rate
Business activities are threatened by fluctuations in foreign currency exchange rate
PAYMENT CAPABILITY
CURRENT SPECIAL MENTION SUBSTANDARD DOUBTFUL LOSS
Principal installment and profit share payments
Financing principal installment is paid promptly; and/or
RR is equal to or more than 80% of RP
There is arrear in financing principal installment payment up to 90 days; and/or RR is equal to or more than 80% of RP
There is arrear in financing principal installment payment surpassing 90 days up to 120 days; and/or
RR is higher than 30% of RP up to 80% of RP (30% of RP < RR ≤ 80% of RP)
There is arrear in financing principal installment payment surpassing 120 days up to 180 days; and/or
RR ≤ 30% of RP for up to 3 payment periods
There is arrear in financing principal installment payment surpassing 180 days; and/or
RR ≤≤≤≤ 30% of RP for more than 3 payment periods Availability and
accuracy of
information on customer finance
Customer always submits information on its finance regularly and accurately
Customer submits information on its finance regularly and accurately
Customer submits
information on its finance irregularly but still accurately
Customer submits
information on its finance irregularly and doubting
Customer does not submit information on its finance
Completeness of documentation
Documentation on
financing is complete and collateral binding is firm
Documentation on financing is complete and collateral binding is firm
Documentation on financing is incomplete and collateral binding is weak
Documentation on financing is incomplete and collateral binding is weak
Documentation on financing and/or binding are not available
Compliance with requirements/ agreement
There is violation of unprinciple financing requirements
There is principle violation of main requirements in financing
Appropriateness of source of liability payments
Source of payments may be identified obviously and agreed by bank and customer
Source of payments is agree with structure/type of financing received
Source of payments may be identified and agreed by bank and customer
Source of payments is less agree with structure/type of financing received
Payments originate from source of other than those agreed
Source of payments is less agree with structure/type of financing received in fairly material amount
Source of payments is not known, while agreed source has been impossible Source of payments is less agree with structure/type of financing received in material amount
There is no possible source of payments
Source of payments is not agree with structure/type of financing received
2. QUALITY RATING FOR MURABAHAH, ISTISHNA, QARDH, AND MULTI-SERVICE TRANSACTIONS
BUSINESS PROSPECT
CURRENT SPECIAL MENTION SUBSTANDARD DOUBTFUL LOSS
Customer’s business growth potential is favorable
Customer’s business growth potential is limited
Customer’s business shows an extremely limited growth potential or does not grow
Customer’s business activities slow down
Customer’s business continuity to recover is in doubt and is most likely to close down
Market is stable and not influenced by changes in economic conditions Limited competition, including firm position in market
Position in market is favorable, not significantly influenced by changes in economic conditions Market share is comparable with that of competitors
Market is influenced by changes in economic conditions
Position in market is fairly favorable but many competitors occur, but may recover if applies new business strategy
Market is extremely influenced by changes in economic conditions Business competition is extremely tight and company operations face serious problems
Losses market in line with deterioting economic conditions
Management is extremely favorable (independent, experienced, and capable)
Management is favorable (independent, less experienced, but capable)
Management is fairly favorable
Management is less experienced
Management is extremely weak
Affiliated companies or group are stable and support the business
Affiliated companies or group are stable and do not bring difficult impacts on customers
Relationship with affiliated companies or group begins to bring difficult impacts on customers
Affiliated companies or group have brought difficult impacts on customers
Affiliated companies or group bring extremely difficult impacts on customers
Manpower is adequate and no record concerning any dispute or strike
Manpower is generally adequate and no record concerning any dispute or strike
Manpower is excessive but relationship between management and employees is generally favorable
Manpower is so excessive in a large number that it may bring unrest
There is a strike which is difficult to settle down
Efforts made by
customer to
preserve the living environment (for large-scale customers with important impacts on the living environment)
Efforts to manage the living environment are favorable and have met at least the minimum requirements as stipulated in applicable laws and regulations
Efforts to manage the living environment are less favorable and have not met minimum requirements as stipulated in applicable laws and regulations
Efforts to manage the living environment are less favorable and have not met minimum requirements as stipulated in applicable laws and regulations, with fairly material divergence
Company has not made significant efforts to manage the living environment or it has made the efforts but has not met requirements as stipulated in applicable laws and regulations, with material divergence
Company has not made significant efforts to manage the living environment or it has made the efforts but has
not met minimum
CUSTOMER PERFORMANCE
CURRENT SPECIAL MENTION SUBSTANDARD DOUBTFUL LOSS
Profit earnings are high and stable
Profit earnings are fairly favorable but potential to decrease
Profit earnings are low Profit earnings are extremely low or negative
Operational losses are financed by selling of assets
Experiences substantial losses
Customer is not capable to meet all liabilities and business may not be maintained
Capital is strong Capital is fairly favorable and owner is capable to add capital when necessary
Debt to capital ratio is fairly high
Debt to capital ratio is high Debt to capital ratio is extremely high
Liquidity and working capital are strong
Liquidity and working capital are generally favorable
Liquidity is inadequate and working capital is limited
Liquidity is extremely low Liquidity is in difficulty Analysis on cash flow
shows customer’s capability to meet obligations to pay financing principal and profit share without supported by additional source of funds
Analysis on cash flow shows customer’s capability to meet obligations to pay financing principal and margin but there is an indication of a certain problem which, if not settled, may influence future payments
Analysis on cash flow shows customer’s capability only to pay principal and a part of margin
Analysis on cash flow shows customer’s incapability to pay financing principal and margin
Analysis on cash flow shows customer’s incapability to cover production costs
Amount of portfolio sensitive to changes in foreign currency exchange rate is relatively low or has been well hedged
Some portfolio are sensitive to fluctuations in foreign currency exchange rate but persistently under control
Business activities are influenced by fluctuations in foreign currency exchange rate
Business activities are threatened by fluctuations in foreign currency exchange rate
Business is threatened by fluctuations in foreign currency exchange rate
Extension of receivables is used to cover up financial difficulties
New receivables are used to cover due liabilities
New receivables are used to cover operational losses
PAYMENT CAPABILITY
CURRENT SPECIAL MENTION SUBSTANDARD DOUBTFUL LOSS
Installments are paid promptly, no arrear, and in
accordance with
requirements as agreed
There is arrear in principal installment and/or margin payment up to 90 (ninety) days
There is arrear in principal installment and/or margin payment surpassing 90 (ninety) days up to 180 (one hundred and eighty) days
There is arrear in principal installment and/or margin payment surpassing 180 (one hundred and eighty) days up to 270 (two hundred and seventy) days
There is arrear in principal installment and/or margin payment surpassing 270 (two hundred and seventy) days
Customer always submits information on its finance regularly and accurately
Customer submits
information on its finance regularly and still accurately
Customer submits
information on its finance irregularly and doubting
Customer does not submit information on its finance or unreliable
Documentation on
receivables agreement is complete and collateral binding is firm
Documentation on
receivables agreement is complete and collateral binding is firm
Documentation on
receivables agreement is less complete and collateral binding is firm
Documentation on
receivables agreement is not complete and collateral binding is weak
Documentation on
There is violation of requirements included in receivables agreement which is not principle
There is violation of main requirements included in receivables agreement
There is principle violation of main requirements included in receivables agreement Extension of receivables
agreement is used to cover up financial difficulties
3. QUALITY RATING FOR IJARAH OR IJARAH MUNTAHIYAH BI TAMLIK
BUSINESS PROSPECT
CURRENT SPECIAL MENTION SUBSTANDARD DOUBTFUL LOSS
Customer’s business growth potential is favorable
Customer’s business growth potential is limited
Customer’s business shows an extremely limited growth potential or does not grow
Customer’s business activities slow down
Continuity of business to recover is in doubt
Business is most likely to close down
Market is stable and not influenced by changes in economic conditions
Competition is limited, including firm position in the market
Position in market is favorable, not significantly influenced by changes in economic conditions Market share is comparable with that of competitors
Market is influenced by changes in economic conditions
Position in market is fairly favorable but there are many competitors, but may recover if applies new business strategy
Market is extremely influenced by changes in economic conditions Competition of business is extremely tight and company operations face serious problems
Losses market in line with deteriorating economic conditions
Management is extremely favorable (independent, experienced, and capable)
Management is favorable (independent, less experienced but capable)
Management is fairly favorable
Management is less experienced
Management is extremely weak
Affiliated companies or group are stable and support the business
Affiliated companies or group are stable and do not bring difficult impacts on customers
Relationship with affiliated companies or group begins to bring difficult impacts on customers
Affiliated companies or group have brought difficult impacts on customers
Affiliated companies or group bring extremely difficult impacts on customers
Manpower is adequate and no record concerning any dispute or strike
Manpower is generally adequate and no record concerning any dispute or strike
Manpower is excessive but relationship between management and employees is generally favorable
Manpower is so excessive in a large number that it may bring unrest
There is a strike which is difficult to settle down
Efforts made by
customer to
preserve the living environment (for large-scale customers with important impacts on the living environment)
Efforts to manage the living environment are favorable and have met at least the minimum requirements as stipulated in applicable laws and regulations
Efforts to manage the living environment are less favorable and have not met minimum requirements as stipulated in applicable laws and regulations
Efforts to manage the living environment are less favorable and have not met minimum requirements as stipulated in applicable laws and regulations, with fairly material divergence
Company has not made significant efforts to manage the living environment or it has made the efforts but has not met requirements as stipulated in applicable laws and regulations, with material divergence
CUSTOMER PERFORMANCE
CURRENT SPECIAL MENTION SUBSTANDARD DOUBTFUL LOSS
Profit earnings are high and stable
Profit earnings are fairly favorable but potential to decrease
Profit earnings is low Profit earnings is extremely low or negative
Operational losses is financed with selling of assets
Experiences substantial losses
Customer is incapable to meet all obligations and business may not be maintained Capital is strong Capital is fairly favorable and
owner is capable to add capital when necessary
Debt to capital ratio is fairly high
Debt to capital ratio is high Debt to capital ratio is extremely high
Liquidity and working capital are strong
Liquidity and working capital are generally favorable
Liquidity and working capital are limited
Liquidity is low Liquidity is in difficulty Analysis on cash flow
shows customer’s capability to meet obligation to pay leasing without support of additional funds
Analysis on cash flow shows customer’s capabity to meet obligation to pay leasing but with an indication of certain problems which, if not settled, may influence future payments
Analysis on cash flow shows customer’s capability only to meet obligation to pay a part of leasing
Analysis on cash flow shows customer’s incapability to pay leasing
Analysis on cash flow shows customer’s incapability to cover production costs
Amount of portfolio sensitive to fluctuations in foreign currency exchange rate is relatively low or has been well hedged
Some portfolio are sensitive to fluctuations in foreign currency exchange rate but constantly under control
Business is influenced by fluctuations in foreign currency exchange rate
Business is threatened by fluctuations in foreign currency exchange rate
Business is threatened by fluctuations in foreign currency exchange rate
Extension of receivables is used to cover up financial difficulties
New receivables are used to pay due liabilities
New receivables are used to cover operational losses
PAYMENT CAPABILITY
CURRENT SPECIAL MENTION SUBSTANDARD DOUBTFUL LOSS
Leasing is paid promptly
There is arrear in leasing payment up to 90 (ninety) days
There is arrear in leasing payment surpassing 90 (ninety) days up to 180 (one hundred and eighty) days
There is arrear in in leasing payment surpassing 180 (one hundred and eighty) days up to 270 (two hundred and seventy) days
There is arrear in leasing payment surpassing 270 (two hundred and seventy) days
Customer always submits information on its finance regularly and accurately
Customer submits
information on its finance irregularly but still accurately
Customer submits
information on its finance irregularly and doubting
Customer does not submit information on its finance Documentation is complete
and collateral bounding is firm
Documentation is less complete and collateral binding is firm
Documentation is incomplete and collateral binding is weak
Documentation on leasing and collateral binding are not available
There is violation of leasing requirements
There is violation of principle leasing requirements Extension of leasing is used
4. QUALITY RATING FOR SALAM
BUSINESS PROSPECT
CURRENT SPECIAL MENTION SUBSTANDARD DOUBTFUL LOSS
Customer’s business growth potential is favorable
Customer’s business growth potential is limited
Growth potential of customer’s business is extremely limited or does not grow
Customer’s business activities slow down
Continuity of business to recover is in doubt
Busines is most likely to close down
Market is stable and not influenced by changes in economic conditions Competition is limited, including firm position in market
Position in market is favorable, not significantly influenced by changes in economic conditions Market share is comparable with that of competitors
Market is influenced by changes in economic conditions
Position in market is fairly favorable but there are many competitors, but may recover if applies new business strategy
Market is extremely influenced by changes in economic conditions Competition of business is extremely tight and company operations face serious problems
Losses market in line with deteriorating economic conditions
Management is extremely favorable (independent, experienced, and capable)
Management is favorable (independent, less experienced but capable)
Management is fairly favorable
Management is less experienced
Management is extremely weak
Affiliated companies or group are stable and support the business
Affiliated companies or group are stable and do not bring difficult impacts on customers
Relationship with affiliated companies or group begin to bring difficult impacts on customers
Affiliated companies or group have brought difficult impacts on customers
Affiliated companies or group bring extremely difficult impacts on customers Manpower is adequate and
no record concerning any dispute or strike
Manpower is generally adequate and no record concerning any dispute or strike
Manpower is excessive but relationship between the management and employees is generally favorable
Manpower is so excessive in a large number that it may bring unrest
There is a strike difficult to settle down
Efforts made by
customer to
preserve the living environment (for large-scale customers with important impacts on the living environment)
Efforts to manage the living environment are favorable and have met at least the minimum requirements as stipulated in applicable laws and regulations
Efforts to manage the living environment are less favorable and have not met minimum requirements as stipulated in applicable laws and regulations
Efforts to manage the living environment are less favorable and have not met minimum requirements as stipulated in applicable laws and regulations, with fairly material divergence
Company has not made significant efforts to manage the living environment or it has made the efforts but has not met requirements as stipulated in applicable laws and regulations, with material divergence
Company has not made significant efforts to manage the living environment or it has made the efforts but has not met minimum requirements as stipulated in applicable laws and regulations, and potential to be prosecuted in court
CUSTOMER PERFORMANCE
CURRENT SPECIAL MENTION SUBSTANDARD DOUBTFUL LOSS
Profit earnings are high and stable
Profit earnings are fairly favorable but potential to decrease
Profit earnings is low Profit earnings is extremely low or negative
Operational losses is financed with selling of assets
Experiences a substantial loss
Capital is strong Capital is fairly favorable and owner is capable to add capital when necessary
Debt to capital ratio is fairly high
Debt to capital ratio is high Debt to capital ratio is extremely high
Liquidity and working capital are strong
Liquidity and working capital are generally favorable
Liquidity and working capital are limited
Liquidity is low Liquidity is in difficulty Analysis on cash flow
shows customer’s capability to promptly meet Salam obligations as agreed without additional support of funds
Analysis on cash flow shows customer’s capability to meet Salam obligations as agreed but with an indication of a certain problem which, if not settled, may influence future Salam delivery of goods
Analysis on cash flow shows that customer is only capable to meet a part of Salam obligations
Analysis on cash flow shows customer’s incapability to meet Salam obligations
Analysis on cash flow shows customer’s incapability to cover production costs
Amount of portfolio sensitive to fluctuations in foreign currency exchange rate is relatively low or has been well hedged
Some portfolio are sensitive to fluctuations in foreign currency exchange rate but constantly under control
Business is influenced by fluctuations in foreign currency exchange rate
Business is threatened by fluctuations in foreign currency exchange rate
Business is threatened by fluctuations in foreign currency exchange rate
Extension of receivables is used to cover up financial difficulties
New receivables are used to cover due liabilities
New receivables are used to cover operational losses
CAPABILITY IN DELIVERY OF
ORDERED GOODS
CURRENT SPECIAL MENTION SUBSTANDARD DOUBTFUL LOSS
Salam receivables have not been due
Salam receivables have been due up to 30 (thirty) days
Salam receivables have been due up to 60 (sixty) days
Salam receivables have been due up to 90 (ninety) days
Salam receivables have been due for more than 90 (ninety) days
Supplier always submits information on its finance regularly and accurately
There is extension in term of delivery of ordered goods
There is violation of Salam agreement
There is principle violation of Salam agreement
There is principle violation of Salam agreement
Supplier submits information on its finance irregularly but persistently accurate
Supplier submits information on its finance irregularly and inaccurately
Supplier submits information on its finance irregularly and doubting
