TaxTMI 
TaxTMI 
Guidelines for Enhanced Disclosures by Credit Rating Agencies (CRAs)
X X X X Extracts X X X X
X X X X Extracts X X X X
....andard format for press release regarding rating action by CRAs. While CRAs are required to monitor and analyse the relevant factors that affect the creditworthiness of an issuer and discuss the same in the rating notes considered by the rating committee for assignment of ratings, such relevant factors may also be suitably incorporated in the press release regarding the rating action. Accordingly, in order to enable investors to understand underlying rating drivers better and make more informed investment decisions, CRAs shall make the following specific disclosures in the section on "Analytical Approach" in the Press Release: a. When a rating factors in support from a Parent/ Group/ Government, with an expectation of infusion of funds t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ion studies are central to evaluating the performance of a CRA and provide an insight on the stability of ratings over a period of time. In order to promote transparency and to enable the market to best judge the performance of the ratings, the CRA should publish information about the historical average rating transition rates across various rating categories, so that investors can understand the historical performance of the ratings assigned by the CRAs. B. Accordingly, CRAs shall publish their average one-year rating transition rate over a 5-year period, on their respective websites, which shall be calculated as the weighted average of transitions for each rating category, across all static pools in the 5-year period. The format of the t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....EBI/ MIRSD/CRA/Cir-01/ 2010 dated January 06, 2010, shall also cover adherence to the prescribed methodology for calculation of transition rates, as specified in Para 3. B. above and default rates, in line with Circular CIR/MIRSD/CRA/6/2010 dated May 3, 2010. 6. This circular is issued in exercise of the powers conferred by Section 11 (1) of Securities and Exchange Board of India Act, 1992 read with the provisions of Regulation 20 of SEBI (Credit Rating Agencies) Regulations, 1999, to protect the interest of investors in securities and to promote the development of, and to regulate, the securities market. Yours faithfully, Parag Basu Chief General Manager Tel. No: 022-26449360 Email id: [email protected] ANNEXURE A Average one-year....