Amendments to Operational Circular for Credit Rating Agencies

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....rs, the following rating scale viz. Expected Loss (EL) based Rating Scale may be used by CRAs for ratings of projects/ instruments associated with infrastructure sector to begin with:  Rating symbols should have CRA's first name as prefix Rating symbol   Definition EL 1  Instruments rated "EL 1" are considered to have the lowest expected loss, over the life of the instrument  EL 2  Instruments rated "EL 2" are considered to have very low expected loss, over the life of the instrument  EL 3  Instruments rated "EL 3" are considered to have low expected loss, over the life of the instrument  EL 4  Instruments rated "EL 4" are considered to have moderate expected loss over the life of the instrument.  EL 5  Instruments rated "EL 5" are considered to have high expected loss, over the life of the instrument  EL 6  Instruments rated "EL 6" are considered to have very high expected loss, over the life of the instrument  EL 7 Instruments rated "EL 7" are considered to have highest expected loss, over the life of the instrument • Para 8.2.2 shall stand modifie....

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.... the purview of other financial sector regulator/s or authority/ies'  Certain instruments/products/securities are regulated by other financial sector regulator/s or authority/ies and could be listed or unlisted. The issuers of such instruments/products/securities and any person connected therewith (such as CRAs) shall abide by the rules/regulations/directions/guidelines applicable to or governing such instruments/products/securities as prescribed by such financial sector regulator or authority whether such instruments/products/securities be listed or unlisted.  Further, if such instruments/products/securities are listed on a Recognised Stock Exchange, the rules/ regulations/ directions/ guidelines specified by the Board from time to time shall continue to be applicable.  • Para 27.3.2 shall stand modified as follows: 27.3.2 Initial Rating Scenario Timelines - immediately but not later than Communication of the rating assigned to issuer  2 working days of rating committee meeting Acceptance of Rating or request for review/appeal  of Rating by the Issuer 5 working days of communication of rating by the....

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....vestment Grade       c. Default from Investment Grade:         AAA         AA         A         BBB       5. Change in Ratings assigned post request of review/appeal by Issuer in surveillance cases     a. Ratings wherein request of review/appeal by the Issuer     b. Rating that have undergone revision post request of review/appeal by Issuer     6. Ratings Withdrawn     7. Rating Distribution for outstanding ratings as on 31^st March/ 30^th September     a. AAA     b. AA     c. A     d. BBB     e. BB     f. B     g. C ....

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....Issuer  Sector  Security Type  Issue Size (INR millio ns)  Listing Status (Listed / Proposed to be listed)  Rating prior to Default  Trigger Event Date of trigger of event/ receiving intimation  Date of Default Recognition Rating prior to default - AAA category 1                   2                   Rating prior to default - AA category 1                   2                   Rating prior to default - A category 1                   2                   Rating prior to default - BBB category 1                   2           &nb....