TaxTMI 
TaxTMI 
Amendments to Operational Circular for Credit Rating Agencies
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....r Credit Rating Agencies' (Operational Circular). 2. The following amendments are being made to Operational Circular: * Para 5.6.1 shall stand modified as follows: In addition to the standardized rating scales prescribed for various instruments, subsequent to discussions with various stakeholders, 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 e....
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....under the security rated by the CRA or the company whose security is rated is wound up or merged or amalgamated with another company. Further, the Press Release shall also mention the reason(s) for withdrawal. * Para 12.3.3 shall be inserted as follows: 12.3.3 received an undertaking from the other CRA(s) that a new rating has been assigned to such security. * Para 12.4.4 shall be inserted as follows: 12.4.4 received an undertaking from the other CRA(s) that a rating is available on such security. * Para 16.2 shall stand modified as follows: 16.2 MD/ CEO of a CRA and any person within CRA who has business responsibility shall not be a member of rating committees of the CRA. * Para 17 shall stand modified as follows: 17....
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....ating 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 CRA to the Issuer Disclosure of rating as non-accepted Rating In case rating is not accepted by the Issuer within a month of communication of rating by the CRA to the Issuer, the same shall be disclosed as Non-Accepted Rating on the CRA's website Dissemination of Press Release on CRA's website and intimation of same to Stock Exchange/Debenture Trustee 2 working days of acceptance of Rating by the Issuer * Para 27.5.2 shall stand modified as follows: 27.5.2 ....
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.... 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 31st March/ 30th September a. AAA b. AA c. A d. BBB e. BB f. B g. C h. D * Annexure 20 shall stand modified as follows: Annexure 20 Details of new credit ratings assigned during last six-months New Ratings assigned between Apr - Sep/ Oct - Mar S . N o Name of the Issu er Sector etc.) Securities Type etc.) Issue Size (INR million s) Listing Status (Listed/ Proposed to be listed ) Wheth er the issuer reques ted for a review/ appeal of rating? Whether review/appeal of the rating was granted by CRA. Rati....
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....ting prior to default - AA category 1 2 Rating prior to default - A category 1 2 Rating prior to default - BBB category 1 2 Rating prior to default - BB category 1 2 Rating prior to default - B category 1 2 Rating prior to default - B category 1 2 Short Term Scale S. N o Name of the Issuer Sector Security Type Issue Size (INR millions) 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 - A1 category 1 2 Rating prior to default - A2 category 1 2 Rating prior to default - A3 category 1 2 Rating prior to default - A4 category 1 2 3. This circular is issued in exer....