Page 5 - Credit Rating Agencies

MD, CEOs of rating agencies not to be members of rating committees: Sebi

In case the board is chaired by an executive director, half of the board shall comprise independent directors

Why do credit rating agencies keep missing big Indian company defaults?

India's major rating firms include Crisil, the Indian unit of S&P Global; ICRA, the local unit of Moody's Investors Service

Sebi eases FPI norms, approves changes in rules prohibiting insider trading

The easing of FPI norms comes at a time when overseas investors have pulled out over $3 billion from the domestic markets since the Union Budget

Credit rating agencies likely to get access to loan default details

At present, banks do not share with CRAs details of a company's existing and future borrowing

Rating agencies: Derated and now berated

The onus is on the CRAs to come out clean or face the wrath of the markets and live in shame

Real Madrid tickets to Fitbit shirts: Gifts by IL&FS for favourable ratings

From tickets for a Real Madrid football match and hefty discounts on a luxurious villa to a Fitbit watch and shirts, a probe into the high-profile IL&FS scam has found numerous cases of favours and gifts extended by the erstwhile top management to senior officials of rating agencies and their family members. While the continuing probe has already led to CEOs of two rating agencies having been sent on leave by their respective boards, fresh details have emerged about suspected attempts by the former top management personnel of IL&FS Group to influence the rating agencies and their top officers for high credit ratings. The new board of IL&FS, which was appointed by the government after massive defaults by the group to the tune of over Rs 90,000 crore and suspected wrong-doings by the former top management, had mandated Grant Thornton to carry out a forensic audit. In an interim forensic audit report on role of credit rating agencies engaged by the erstwhile management, Grant

Care Ratings CEO sent on leave after Sebi receives anonymous complaint

Earlier this month, the local unit of Moody's Investors Service sent its managing director on leave amid an inquiry into a controversial rating decision

Why regulation isn't enough to curb bad behaviour of credit rating agencies

Rating agencies are meant to give comfort about an issuer's ability to repay debt

Stocks of credit rating agencies likely to remain under pressure: Analysts

Capital market regulator Securities and Exchange Board of India (Sebi) on Thursday introduced a "probability of default" mechanism to keep credit rating agencies in check.

How to clean up the rating mess in India

Create a junk bond market to ease pressure on rating agencies for giving higher ratings. Let the investors price in risk for exposures to lesser rated papers

Time for credit rating agencies to quickly respond to bond market signals

Rising spreads on a company's bonds will henceforth serve as a wake-up call to credit rating agencies to review their ratings

IL&FS crisis: What is the Sebi's latest diktat to credit rating agencies?

The IL&FS crisis exposed the chinks in the credit rating agencies' armour, catching the market off-guard. Market regulator Sebi's latest guidelines try to plug some of the loopholes

Rating the raters

Reforms package must include strong deterrence

Raters need a Swachh Abhiyan

The biggest reform, however, will be to ask CRAs to separate their rating entity and their non-rating businesses in order to avoid conflict of interest

Credit rating: New perspectives

There is a need for greater precision in quantifying risk and assessing quality through a finer gradation of risk categories

Sebi sets up review panel to hear disputes between rating agencies & firms

The Securities and Exchange Board of India (Sebi) on Wednesday has put out new framework for credit rating agencies (CRAs) to hear the appeals of companies aggrieved by the rating outlook. Currently, there is no stipulated mechanism to review such matters. The move follows hundreds of complaints filed by companies last year challenging the ratings assigned to their products by CRAs. However, in lack of proper mechanism, they moved to another agency even in the cases which holds merit.The market regulator has introduced the concept of 'rating committee' which will hear the disputes over rating assigned to them by CRAs. "In the interest of transparency and fairness, it has been decided that all cases of requests by an issuer for review of the ratings provided to its instruments by the CRA, shall be reviewed by a rating committee of the CRA that shall consist of a majority of independent members, Sebi said in a circular. The proposal was the part of Sebi's consultation paper on the ...

Govt may redefine 'cash flow' to aid ratings of infrastructure firms

Even if a new rating agency were to lower the standards and make more receivables equivalent to cash flow, those are unlikely to become popular among banks

Will try to convince rating agencies on fiscal consolidation: Fin Min

In an interview to PTI, the secretary said another leading global agency Moody's had upgraded India's sovereign ratings last year

Onus on rating agencies to reveal loan defaults

Sebi softens stand after India Inc, lenders express concern

Stocks of credit rating agencies lose sheen

Shares of CRISIL, ICRA, CARE Ratings have underperformed the broader markets over the past year