Enhanced Disclosure and Transparency Norms for Credit Rating Agencies

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....blic, the following guidelines are being issued: 1. Request by Issuers for review of ratings provided by CRAs: A. In the interest of transparency and fairness, it has been decided that all cases of requests by an Issuers for review of the rating(s) provided to its instrument(s) by the CRA, shall be reviewed by a Rating Committee of the CRA that shall consist of a majority of independent members. B. As defined in the Circular for Enhanced Standards for CRAs dated November 01, 2016, "independent" would mean people not having any pecuniary relationship with the CRA or any of its employees. 2. Disclosures in case of ratings not accepted by an Issuer A. In order to make the disclosures more relevant, it is clarified that all non-a....

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....ist of defaults separately for each rating category, shall now be disclosed on a half-yearly basis. IV. With respect to Annexure VII, the following terms, in addition to those already defined under Point 2.2 of the aforementioned Circular, shall have the meaning as under: a. Debt-weighted default rate: the amount of rated debt that defaulted in the static pool as a percentage of the total amount of rated debt in the static pool. b. Averaging for debt-weighted default rate shall be based on the weighted average method where weights shall be the amount of debt rated in each static period. V. For ease of understanding by the investors, these disclosures shall be prepared and disclosed separately for ratings of a. Securities; and b. Fin....

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....t appeal by Issuer in surveillance cases a. Ratings appealed by the Issuer b. Rating that have undergone revision post appeal by Issuer 6. Ratings Withdrawn 7. Rating Distribution for outstanding ratings as on 31st March/ 30th September a. AAA b. AA c. A d. BBB e. BB f. B g. C h. D ANNEXURE B: Modification of Disclosures of Circular MIRSD/ CRA/ 6/ 2010 dated May 03, 2010 Annexure I - Details of new credit ratings assigned during last six-months New Ratings assigned between Apr - Sep/ Oct - Mar S. No Name of the Issuer Sector (Finance & Banking, Textiles, etc.) Instrument Type (NCD, Preference Shares, CP, CD, etc.) Issue Size (Rs. millions) Listing Status (Listed/ Unlisted) Rating Annexure II-Movement* of E....

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....de S. No Name of the Issuer Sector (Finance & Banking, Textiles, etc.) Type of Instrument being rated (NCD/ Preference Shares/ CP/ CD, etc.) Listing Status (Listed/ Unlisted) Rating prior to Revision Rating post Revision Annexure V - History of Credit Rating of all Outstanding Securities History of Credit Rating of all Outstanding Securities S. No Name of the Issuer Sector (Finance & Banking, Textiles etc) Instrument Type (NCD, Preference Shares, CP, CD etc) Outstanding Issue Size (` millions) Listing Status (Listed/ Unlisted) Initial Rating Date of Initial Rating Rating after 1st Revision Date of 1st Revision Rating after 2nd Revision Date of 2nd Revision Rating after 3rd Revision Date of 3rd Revision …&hell....