Capital Intelligence (CI) was established in 1985. The original area of ratings coverage was the Middle East. Over time coverage was expanded to include the wider Mediterranean region, Central and Eastern Europe, South Asia, South East Asia, the Far East and South Africa. In all, the Company provides analysis and ratings for over 340 financial institutions and corporates in 38 countries.

CI offers investors and risk managers timely, impartial and forward looking analysis of credit trends and counterparty credit risk. While analysis and rating of banks still comprise the bulk of CI's activities, the Company has also significantly expanded its range of services to include corporate ratings and the rating of bonds and other specific debt issues. CI also provides analysis and rating services for Islamic institutions, including non-bank financial institutions. In addition, to meet the requirements of capital market participants in countries with sub- or low investment grade sovereign ratings, CI has adopted National Ratings, which provide country-specific rather than internationally comparable credit opinions.

CI's clients and subscribers include the world's leading commercial and investment banks, central banks, international financial institutions, Islamic financial institutions, export credit agencies and government agencies. In short, any organisation with an exposure to or that needs to know about the credit risk of financial institutions in emerging markets.

CI's analytical reports and data services are an essential complement to investors' and risk managers' own credit analysis and are delivered via the Internet, CD-ROM and hard copy.

The Company's Head Office is in Limassol, Cyprus with additional analysts based in Hong Kong and India

CI has a wholly owned subsidiary in Lebanon under the name of Capital Intelligence Lebanon for Credit Rating.

Investment Grade
AAA - The highest credit quality. Exceptional capacity for timely fulfilment of financial obligations and most unlikely to be affected by any foreseeable adversity. Extremely strong financial condition and very positive non-financial factors.

AA - Very high quality. Very strong capacity for timely fulfilment of financial obligations. Unlikely to have repayment problems over the long term and unquestioned over the short and medium terms. Adverse changes in business, economic and financial conditions unlikely to affect the institution significantly.

A - High credit quality. Strong capacity for timely fulfilment of financial obligations. Possesses many favourable credit characteristics but may be vulnerable slightly to adverse changes in business, economic and financial conditions.

BBB - Good credit quality. Satisfactory capacity for timely fulfilment of financial obligations. Acceptable credit characteristics but some vulnerability to adverse changes in business, economic and financial conditions. Medium grade credit characteristics and the lowest investment grade category.

Speculative Grade
BB - Speculative credit quality. Capacity for timely fulfilment of financial obligations vulnerable to adverse changes in internal or external circumstances. Financial and/or non-financial factors do not provide significant safeguard and the possibility of investment risk may develop.

B - Significant credit risk. Capacity for timely fulfilment of financial obligations very vulnerable to adverse changes in internal or external circumstances. Financial and/or non-financial factors provide weak protection; high probability for investment risk exists.

C - Substantial credit risk is apparent and the likelihood of default is high. Considerable uncertainty as to timely repayment of financial obligations. Credit is of poor standing with financial and/or non-financial factors providing little protection.

RS - Regulatory supervision (this rating is assigned to financial institutions only). The obligor is under the regulatory supervision of the authorities due to its weak financial condition. The likelihood of default is extremely high without continued external support.

SD - Selective default. The obligor has failed to service one or more financial obligations but CI believes that the default will be restricted in scope and that the obligor will continue honouring other financial commitments in a timely manner.

D - The obligor has defaulted on all, or nearly all, of its financial obligations.

Investment Grade
A1 - Superior credit quality. Highest capacity for timely repayment of short-term financial obligations that is extremely unlikely to be affected by unexpected adversities. Institutions with a particularly strong credit profile have a "+" affixed to the rating.

A2 - Very strong capacity for timely repayment but may be affected slightly by unexpected adversities.

A3 - Strong capacity for timely repayment that may be affected by unexpected adversities.

Speculative

C - Inadequate capacity for timely repayment if unexpected adversities are encountered in the short term.

RS - Regulatory supervision (this rating is assigned to financial institutions only). The obligor is under the regulatory supervision of the authorities due to its weak financial condition. The likelihood of default is extremely high without continued external support.

SD - Selective default. The obligor has failed to service one or more financial obligations but CI believes that the default will be restricted in scope and that the obligor will continue honouring other financial commitments in a timely manner.

D - The obligor has defaulted on all, or nearly all, of its financial obligations.

AAA - Financially in extremely strong condition with positive financial trends; significant strengths in other non-financial areas. Operating environment likely to be highly attractive and stable.

AA - Financially in very strong condition and significant strengths in other non-financial areas. Operating environment likely to be very attractive and stable.

A - Strong financial fundamentals and very favourable non-financial considerations. Operating environment may be unstable but institution's market position and/or financial strength more than compensate.

BBB - Basically sound overall; slight weaknesses in financial or other factors could be remedied fairly easily. May be limited by unstable operating environment.

BB - One or two significant weaknesses in the bank's financial makeup could cause problems. May be characterised by a limited franchise; other factors may not be sufficient to avoid a need for some degree of temporary external support in cases of extraordinary adversity. Unstable operating environment likely.

B - Fundamental weaknesses are present in the bank's financial condition or trends, and other factors are unlikely to provide strong protection from unexpected adversities; in such an event, the need for external support is likely. Bank may be constrained by weak market position and/or volatile operating environment.

C - In a very weak financial condition, either with immediate problems or with limited capacity to withstand adversities. May be operating in a highly volatile operating environment.

D - Extremely weak financial condition and may be in an untenable position.

Plus (+) and minus (-): foreign and local currency long term ratings in the categories from "AA" to "C" may be modified by the addition of a plus or minus sign to indicate that the strength of a particular institution is, respectively, slightly greater or less than that of similarly rated peers.

Outlook: expectations of improvement, no change or deterioration in a rating over the 12 months following its publication are denoted by letters added to each set of ratings: Positive, Stable or Negative.

Qualified: in cases where data and/or co-operation are such that it is not possible to formulate ratings to CI's high standards of robustness and reliability the letter "q" is appended to the ratings.