Enhanced CRA disclosures require standardized default computation, PD benchmarks, CE rating symbols, and liquidity and sensitivity disclosures. CRAs must compute and disclose issuer wise cumulative default rates using the Marginal Default Rate approach with monthly static pools, include withdrawn and non cooperative ratings under prescribed rules, publish annual weighted one , two and three year long run and short run default rates with ten years of archival data, adopt a published SOP for timely default recognition, prepare standardized PD benchmarks with specified confidence interval principles and tolerance levels, adopt a CE suffix for explicitly credit enhanced instruments with disclosure of unsupported and supported ratings and a modelled assessment of enhancement adequacy, include quantitative rating sensitivities in press releases, standardize liquidity descriptors, and track bond spread deviations.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Enhanced CRA disclosures require standardized default computation, PD benchmarks, CE rating symbols, and liquidity and sensitivity disclosures.
CRAs must compute and disclose issuer wise cumulative default rates using the Marginal Default Rate approach with monthly static pools, include withdrawn and non cooperative ratings under prescribed rules, publish annual weighted one , two and three year long run and short run default rates with ten years of archival data, adopt a published SOP for timely default recognition, prepare standardized PD benchmarks with specified confidence interval principles and tolerance levels, adopt a CE suffix for explicitly credit enhanced instruments with disclosure of unsupported and supported ratings and a modelled assessment of enhancement adequacy, include quantitative rating sensitivities in press releases, standardize liquidity descriptors, and track bond spread deviations.
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