RBI tweaks partial credit enhancement rules for issuers

It allows low-rated corporates to obtain a guarantee from lenders when issuing debt

The Reserve Bank of India said on Thursday that companies must be rated by at least two credit rating agencies to be eligible to issue debt under the country's partial credit enhancement programme.

Partial credit enhancement allows low-rated corporates to obtain a guarantee from lenders when issuing debt, lowering the cost for issuers and attracting more investors.