SEBI issued a circular mandating Credit Rating Agencies (CRAs) ...

Municipal Bond Ratings Transformed: SEBI Introduces Expected Loss Scale to Improve Infrastructure Investment Transparency

May 16, 2025

Circulars SEBI

SEBI issued a circular mandating Credit Rating Agencies (CRAs) to use Expected Loss (EL) based Rating Scale for municipal bonds financing infrastructure assets. The circular allows CRAs to supplement standardized rating scales with EL ratings to better reflect recovery prospects of municipal bonds. Implemented immediately under Section 11(1) of SEBI Act, 1992, the directive aims to enhance transparency and provide more comprehensive risk assessment for infrastructure-related municipal debt instruments, following consultations with the Corporate Bonds and Securitisation Advisory Committee.

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SEBI issued a circular mandating Credit Rating Agencies (CRAs) ...

Municipal Bond Ratings Transformed: SEBI Introduces Expected Loss Scale to Improve Infrastructure Investment Transparency

May 16, 2025

Circulars SEBI

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