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What to look in a corporate before investing in its Corporate Deposit?
An investor can look out for these factors before investing in a corporate FD:-

• Credit rating :
  Investors should look for corporates with higher credit rating, since ratings are indicative of the risk involved in the investment. You can find credit rating chart issued by CRISIL below for reference
  
  

  Rating	Description
  FAAA ("F Triple A") Highest Safety	This rating indicates that the degree of safety regarding timely payment of interest and principal is very strong.
  FAA ("F Double A") High Safety	This rating indicates that the degree of safety regarding timely payment of interest and principal is strong. However, the relative degree of safety is not as high as for fixed deposits with 'FAAA' ratings.
  FS (Adequate Safety)	This rating indicates that the degree of safety regarding timely payment of interest and principal is satisfactory. Changes in circumstances can affect such issues more than those in the higher rated categories.
  FB Inadequate Safety	This rating indicates inadequate safety of timely payment of interest and principal. Such issues are less susceptible to default than fixed deposits rated below this category, but the uncertainties that the issuer faces could lead to inadequate capacity to make timely interest and principal payments.
  FC High Risk	This rating indicates that the degree of safety regarding timely payment of interest and principal is doubtful. Such issues have factors present that make them vulnerable to default; adverse business or economic conditions would lead to lack of ability or willingness to pay interest or principal.
  FD Default	This rating indicates that the fixed deposits are either in default or are expected to be in default upon maturity.
  NM Not Meaningful	Instruments rated 'NM' have factors present in them, which render the outstanding rating meaningless. These include reorganization or liquidation of the issuer, and the obligation being under dispute in a court of law or before a statutory authority.

  
  

  Note

  • CRISIL may apply '+' (plus) or '-' (minus) signs for ratings from FAA to FC to indicate the relative position within the rating category
  
  
  • CRISIL may assign rating outlooks for the ratings from 'FAAA' to 'FB'. Ratings on Rating Watch will not carry outlooks. A rating outlook indicates the direction in which a rating may move over a medium-term horizon of one to two years. A rating outlook can be 'Positive', 'Stable', or 'Negative'. A 'Positive' or 'Negative' rating outlook is not necessarily a precursor of a rating change. CRISIL may place an outstanding rating on Rating Watch if the issuer announces a merger or acquisition, or de-merger of some business that may impact the credit profile of the rated debt instrument. Ratings may also be placed on watch if the issuer’s credit profile is impacted on account of an action by regulators, or when the impact of specific events on the credit profile cannot be accurately assessed at the point when they occur, and additional information may be necessary for CRISIL to fully ascertain the creditworthiness of the rated instrument. CRISIL may place a rating on watch, with positive, negative or developing implications. A listing under rating watch does not imply that a rating will necessarily change, nor is it a prerequisite for rating change.
  
  
  • The contents within parenthesis are a guide to the pronunciation of the rating symbols.


• Company Background :
  An investor should look into various factors such as financial statements, previous profit margins, analysis by various research houses regarding the corporate.


• Repayment history :
  The past repayment history of the corporate helps an investor to ascertain the probability of promised cash flow on the deposit procured by the corporate.