Large rating agencies like CRISIL, ICRA and CARE follow what is called the CRAMEL model for evaluating debt issued by manufacturing companies. Rating agencies make slight variations of the above CRAMEL model to give credit rating assessment of banks and insurance companies also. But, what exactly is this CRAMEL model? It is actually an abbreviation that can be expanded to cover 6 key variables that go into determining the credit soundness of the company. The CRAMEL model basically covers 6 analytical attributes of companies to take a rating view. The rating variables are capital adequacy, Resource Raising Ability, Asset Quality, management and systems evaluation, earnings potential and Liquidity and asset liability management.