Icra launches new product for infra sector

Domestic rating agency Icra today said it has launched a new credit rating system for the infrastructure sector, aiming to help long-term lenders price their risks better.
The new framework will be a comment on the expected loss (EL) of a project entity, which would factor in the probability of default (PD) and the recovery prospects, it said in a statement.
Despite the sector's requirements for funding, investors stay away due to higher perceived risks and lower credit ratings, it said.
"The adoption of the proposed rating system for the infrastructure sector will enable better risk-based pricing and can also help in opening up long-term funding avenues for the sector," its vice president Shubham Jain said. .............................................................