Introduction of Expected Loss (EL) based Rating Scale and Standardisation of Rating Scales Used by Credit Rating Agencies

Introduction of Expected Loss (EL) based Rating Scale and Standardisation of Rating Scales Used by Credit Rating Agencies https://www.taxtmi.com/circulars?id=64945 An Expected Loss (EL) based Rating Scale of seven categories (EL 1 to EL 7) is introduced for infrastructure instruments, with CRA name as prefix; CRAs must follow Board guidance for existing ratings. CRAs must standardise rating scales by aligning with scales prescribed by the respective financial sector regulator or, if none prescribed, adopt Board prescribed rating scales. Use of rating scales is restricted to those issued by the Board where a regulator has not prescribed a scale. The circular mandates implementation timelines, board reporting, and regulator notification obligations. en-us Fri, 16 Jul 2021 00:00:00 +0530 Sat, 17 Jul 2021 11:30:00 +0530 TaxTMI RSS Generator Introduction of Expected Loss (EL) based Rating Scale and Standardisation of Rating Scales Used by Credit Rating Agencies https://www.taxtmi.com/circulars?id=64945 An Expected Loss (EL) based Rating Scale of seven categories (EL 1 to EL 7) is introduced for infrastructure instruments, with CRA name as prefix; CRAs must follow Board guidance for existing ratings. CRAs must standardise rating scales by aligning with scales prescribed by the respective financial sector regulator or, if none prescribed, adopt Board prescribed rating scales. Use of rating scales is restricted to those issued by the Board where a regulator has not prescribed a scale. The circular mandates implementation timelines, board reporting, and regulator notification obligations. Circulars SEBI Fri, 16 Jul 2021 00:00:00 +0530 https://www.taxtmi.com/circulars?id=64945