Default treatment clarified: CRAs must verify funds, reasons and escrow payments before downgrading after payment failures. Where non-payment of principal and/or interest arises from circumstances beyond the issuer's control (such as incorrect/dormant investor account details or account freezes), a CRA must confirm availability of adequate funds with the issuer and verify proof of payment failure, the specified reasons for failure, and that required amounts were paid into a separate escrow account on the due date; the CRA must, on the same day as its rating press release, furnish specified payment and failure details to Stock Exchanges, Depositories and the Debenture Trustee for dissemination.
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Default treatment clarified: CRAs must verify funds, reasons and escrow payments before downgrading after payment failures.
Where non-payment of principal and/or interest arises from circumstances beyond the issuer's control (such as incorrect/dormant investor account details or account freezes), a CRA must confirm availability of adequate funds with the issuer and verify proof of payment failure, the specified reasons for failure, and that required amounts were paid into a separate escrow account on the due date; the CRA must, on the same day as its rating press release, furnish specified payment and failure details to Stock Exchanges, Depositories and the Debenture Trustee for dissemination.
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