Credit rating of Rs 35,000 cr debt could be lowered due to RBI diktat: Icra

Power, healthcare, engineering, construction, and roads sectors account for 60% of the total entities whose ratings could potentially be affected

The Reserve Bank of India’s (RBI) diktat directing credit rating agencies to adopt specific criteria while assigning credit enhanced (CE) ratings to bank facilities could potentially lower the credit ratings of around 100 entities, corresponding to Rs 35,000 crore of rated debt, rating agency Icra has said.

The rating agency is making certain changes in its methodology for assessing explicit third-party support forms like guarantees, letters of comfort (LoC), co-obligor structures, etc.

Power, healthcare, engineering, construction, and road sectors account for 60 per cent of the total entities whose ratings could potentially be affected. These sectors account for 44 per