TMI BlogAmendments to Operational Circular for Credit Rating AgenciesX X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4A. Guidelines on the listed securities/instruments/products falling under 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 Acce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a. Total Upgrades b. Upgrades from Non- Investment to Investment Grade 3. Downgrades a. Total Downgrades b. Downgrades from Investment to Non - Investment Grade 4. Defaults a. Total Defaults b. Default from Non- Investment Grade c. Default from Investment Grade: AAA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ating assign ed prior to request for review/ appeal by the issuer Final Rating Assigned Annexure 21 shall stand modified as follows: Annexure 21 Movement* of Each Credit Rating Upgrades Rating Upgrades between Apr Sep/ Oct Mar S. No Name of the issue r Sect or Security Type etc.) Listing Status (Listed / Propos ed to be listed) Rating prior to revision Rating post revision Date of Press release for Rating upgrade Notch difference Trigger Event (Quarterly Results, Exchange Disclosures , Annual Surveillanc e etc.) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rating prior to default - A category 1 2 Rating prior to default BBB category 1 2 Rating prior to default BB category 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rating prior to default A3 category 1 2 Rating prior to default A4 category 1 2 3. 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 Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999 , to protect the interest of investors in sec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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