Page 5 - Rating Agencies

Mainak resigns as CARE Ratings chief after Sebi asks for his removal

Mainak accused of interfering with the ratings of IL&FS, says a forensic report.

Close to a third of rated companies do not cooperate with rating agencies

Rating agencies also struggle to find information on default in the event of a non-cooperative entity

Sebi tightens governing norms for rating agencies; CEOs can't be on panel

The latest steps are to reduce conflict of interest situations at Credit rating agencies

ICRA downgrades rating outlook for one third of its wind, solar portfolio

In addition to a slower tendering activity, the sector also faces concerns over delayed payments

RBI turns down Sebi plan for credit rating agencies' access to defaults

Market regulator has proposed letting rating agencies access the central bank's data base

Sebi mandates full disclosure on loan defaults with rating agencies

Amid concerns over banks citing 'client confidentiality' to resist sharing of information on delayed loan repayments and possible defaults by their borrowers, capital market regulator Sebi on Wednesday announced new norms to make it mandatory for companies to provide these details to credit rating agencies. Amid numerous cases of huge loan defaults by corporates, including in cases like Infrastructure Leasing & Financial Services Ltd (IL&FS), credit rating agencies have also come under the scanner for failing to flag potential credit risks of the securities and entities rated by them. However, the rating agencies have often sought to shift the blame to companies and lenders by claiming that they find it difficult to get information about delay in meeting bank obligations and payment failures which are considered early indicators of a default. Officials said there have been occasions when some entities have sought to take the benefit of certain regulatory gaps as banks are ...

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

ICRA slips 6% after it sends MD and CEO Naresh Takkar on sudden leave

Without disclosing specific reasons, the rating agency informed the stock exchanges that its board in its meeting on Monday decided to place Takkar on leave, effective immediately.

Sebi tightens norms: Rating agencies to now provide 'default probability'

Sebi has also mandated a specific section on 'rating sensitivity' in the press releases from the agencies to indicate possible trigger for an upward or downward rating change

Letter to BS: Credit rating must be handled by professionals with expertise

Absence of protection for investors in the event of faulty risk projection in an issuer-based ratings is an escape route for these agencies

Sebi questions rating agencies on valuing debt backed by promoter shares

The regulator wants to know the basis for grading debt schemes with such exposures

Rating agencies keep close watch on Religare Enterprises

Credit rating agencies have intensified scrutiny of Religare Enterprises following recent disclosures. While one of these agencies has downgraded an instrument of its lending arm, others are reviewing various instruments and bank debt of the group they have rated, in the light of latest developments. On Wednesday, CARE ratings said it downgraded ratings for non-convertible debentures (NCDs) of Religare Finvest from AA- to A citing corporate governance and disclosure issues. "The revision in the rating of instruments of Religare Finvest Ltd (RFL) takes into account the corporate governance/disclosure issues as highlighted in the qualification/observations made by the auditor in the Audited Annual Report for FY17," CARE said in a press release. Separately, Religare Enterprises in an exchange filing said it had withdrawn itself from ICRA's rating of its short term debt/commercial paper saying "the Company does not intend to use the same in near future". Rating agencies allow such ...