Crisil raises disclosure standards for securitisation ratings

In a bid to improve the transparency in the Indian securitisation market, rating agency Crisil has enhanced disclosure standards on securitisation transactions’ ratings.

Accordingly, the new standards would incorporate a detailed scenario analysis impact on credit protection measure under different assumptions. Similarly, performance details and track record of various counterparties involved in the transactions and similar asset pools would be analysed to facilitate comparisons.

“Recent global experience underscores the importance of improving both the quantity and quality of information available to investors. As a proactive step Crisil is implementing these measures in the domestic market, where the performance of securitisation transactions has been far better and more stable than in global markets,” said Prasad Koparkar, head-structured finance ratings, Crisil.