Page 3 - Credit Rating Agencies

Sebi cancels certificate of registration granted to Brickwork Ratings

Orders it to wind down operations in six months

Sebi orders Brickwork Ratings to wind down operations in six months

In its order, Sebi highlighted several violations by Brickwork, including that it failed to follow a proper rating process and exercise due diligence while providing ratings

Sebi rolls out framework for credit rating agencies, applicable from Jan'23

Markets regulator Sebi on Wednesday came out with a new framework for credit rating agencies (CRAs), involving ratings of securities having explicit credit enhancement features. The new framework, applicable from January 1, 2023, is aimed at enhancing transparency and improving the rating process, the Securities and Exchange Board of India (Sebi) said in a circular. Under the rule, CRAs can assign the suffix 'CE' (Credit Enhancement) to the rating of instruments having explicit credit enhancement. To enable investors to understand the extent of credit enhancement provided by a third party or parent or group company and support considerations specified by the regulator, including debt backed by a pledge of shares and a letter of comfort, Sebi said that the press release for credit ratings, with or without the CE-suffix, backed by such support considerations need to contain certain disclosures. These disclosures are unsupported ratings without factoring in the explicit credit ...

Sebi directs credit rating agencies to up firewall with non-rating entities

The monitoring of the circular will be required to be done through half-yearly internal audits

Sebi tweaks rules for sharp rating actions, non-cooperating issuers

Sebi comes out with circular with changes, also tweaks policy to deal with non-cooperating issuers

Sebi enhances disclosures requirements for credit rating agencies

Capital markets regulator Sebi on Friday enhanced disclosure rules for credit rating agencies (CRAs) and put in place a framework for rating withdrawal of perpetual debt securities. The move is aimed at allowing investors and other stakeholders to properly use such disclosures in a fair assessment of CRAs, the Securities and Exchange Board of India (Sebi) said in a circular. The new framework will be applicable to credit ratings of securities that are already listed or proposed to be listed on a stock exchange. In order to standardise the methodology pertaining to disclosure of a 'sharp rating action', Sebi said CRAs will have to compare two consecutive rating actions. Further, a CRA will have to disclose a sharp rating action if the rating change between two consecutive rating actions is more than or equal to three notches downward. The regulator has mandated CRAs to frame detailed guidelines on what constitutes non-cooperation by issuers, which includes non-submission of quarte

Rating agencies caught in the crossfire

There are close to 300 triple-A rated companies. Many of them will be downgraded and banks' capital requirements will rise

Sebi standardises industry classification for credit rating agencies

The standardised framework will help bring about uniformity in the classifications being used across sectors and in securities market

Russia, Ukraine credit ratings put on review for downgrade by Moody's

S&P lowered Russia to BB+, below investment grade, from BBB- late Friday and warned of further cuts

CRISIL upgrades Vedanta's long-term debt, loans ratings from 'AA-' to 'AA'

CRISIL improved its rating on Vedanta Ltd. on account of stronger than expected operating profitability due to high commodity prices in FY22.

Jubilant Pharma: Fitch revises outlook to 'negative'; affirms 'BB' rating

Fitch estimates the pharma company's EBITDA to drop significantly in FY23 due to lower volume and narrowing of the margin to 11%

India Ratings upgrades Capacite Infra to 'IND BBB'; outlook 'stable'

Capacite Infraprojects provides engineering, procurement and construction/turnkey solutions for housing, high rises, super high rises, speciality buildings and urban infrastructure

Fitch's rating disappointing but investors see future in India, its reforms

India's economy can expect a minimum rating of A given that all debt is in rupees and there is no external risk posed.

Credit rating agencies still vulnerable to new biz risks, say experts

Agencies insist they have improved supervision and governance

S&P upgrades Tata Steel, Tata Motors, JLR ratings over Tata Sons' influence

The upgrades reflect the view that the credit profiles of the Tata Group entities are strengthened by their importance to Tata Sons, with potential for financial support

Yes Bank surges 16% on heavy volumes, hits 6-week high

In the past three trading days, the stock price of Yes Bank has appreciated by 18 per cent after the rating agency ICRA affirmed private lender's various instrument with a stable outlook

Amid inconsistencies, ESG rating framework not on Sebi's agenda, for now

Companies currently are inconsistent with comprehensive disclosures on ESG

Unleash animal spirits to put economy on recovery path: FM tells India Inc

Asks rating agencies to be mindful of relative spending spree of economies

Sebi imposes a penalty of Rs 1-crore on Brickwork Rating India

Sebi and RBI had conducted a joint inspection, where they found lapses

ICRA Q1 net profit declines 17% to Rs 17 cr, income down at Rs Rs 80.8 cr

The level of activity in the economy was significantly impacted by the coronavirus-induced lockdown in the first quarter of 2020-21, it said