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<h1>SEBI Permits Credit Rating Agencies to Apply Expected Loss Rating Scale for Municipal Infrastructure Bond Financing</h1> A regulatory circular allows Credit Rating Agencies to use Expected Loss (EL) based Rating Scale for municipal bonds financing infrastructure assets. The approach aims to better reflect recovery prospects when used alongside standard rating scales. The circular is effective immediately, issued under SEBI's statutory powers to protect investor interests and regulate securities markets, following consultations with stakeholders including the Corporate Bonds and Securitisation Advisory Committee.