Page 4 - Credit Rating

Coronavirus outbreak, recession cloud credit quality outlook, says CRISIL

Moody's, too, revises outlook on Indian banks to negative

NCDs provide interest income, but look at credit rating before investing

NCDs are debt instruments that can't be converted into equity or stocks. If you are someone who wants to get a piece of this pie, you need to choose the right one for you

IL&FS case: Sebi fines ICRA, CARE Rs 2.5 mln each for poor due diligence

Markets regulator Sebi on Thursday imposed a penalty of Rs 25 lakh each on rating agencies ICRA and CARE for failing to exercise "due diligence" while assigning credit rating to the non-convertible debentures of IL&FS. Sebi also said the default by IL&FS occurred due to "lethargic indifference and needless procrastination and laxity" of these rating agencies. The case relates to the default committed by IL&FS and its subsidiary IL&FS Financial Services on their obligations in respect of the commercial paper, inter-corporate deposits (ICDs), as well as on interest payments related to the non-convertible debentures (NCDs). The regulator undertook an examination with respect to the role of the credit rating agencies (CRAs), including CARE Ratings Ltd and ICRA Ltd, in assigning rating to various NCDs of Infrastructure Leasing and Financial Services (IL&FS). According to Sebi, IL&FS and its group companies' financial parameters, especially short-term borrowings, ...

Delinking ratings from credit profile may hit securitisation, says CRISIL

The ability of credit rating agencies and investors to differentiate the credit quality of securitised instruments from their servicers and originators could be affected, says CRISIL.

RCEP offer 'was not as much as our aspirations', says FM Sitharaman

She also said that she held discussions with credit rating agencies on their methodology to assess risk

ICRA downgrades Peninsula Land's debentures to 'C', cites debt servicing

The company, which is part of the Ashok Piramal Group, till July 2019 had Rs 2,310 crore in debts on a consolidated basis

Moody's cuts India's credit outlook to negative; govt not convinced

Outlook downgrade comes 2 yrs after ratings upgrade. Govt says fundamentals remain strong

ICRA revises rating outlook for one-third of wind, solar portfolio

The agency has downgraded rating for 20% of its rated portfolio for wind and solar

Sebi, Ministry of Corporate Affairs plan to turn up heat on rating firms

Credit rating agencies may be told to follow norms set for bourses; move will change ownership structure

Over Rs 1.6 trillion debt downgraded by credit rating agencies in August

Credit risks have continued to weigh on the debt markets, with debt programmes worth Rs 1.64 trillion being downgraded in August. So far in FY20, Rs 10 trillion worth of debt has been downgraded

Ask AI: Lenders bring in machines to rate credit risk of customers

The race to offer loans to customers who do not have any collateral to offer has prompted innovators to look at new sources of data on them

Credit rating agencies likely to get access to loan default details

At present, banks do not share with CRAs details of a company's existing and future borrowing

S&P reaffirms B+ rating for Tata Motors, keeps outlook 'negative'

Ratings agency S&P has reaffirmed Tata Motors' long-term issuer and issue credit ratings to be 'vulnerable to nonpayment' while keeping the outlook negative. S&P Global Ratings said it has reaffirmed 'B+' on Tata Motors' long-term issuer and issue credit ratings while keeping negative outlook due to high cash burn at its British arm Jaguar Land Rover, geopolitical risks such as Brexit and the US tariffs, and India's automotive market slowdown. The ratings agency has also removed the company from CreditWatch stating geopolitical risks could take longer than expected to play out. "We expect Tata Motors' cash flow to stay negative at least for the next 12-24 months until global automotive demand recovers, the company's Chinese operations stabilise, and the expected cost cutting restores its financial health," S&P said in a statement. Tata Motors' first-quarter fiscal 2020 performance remained weak, despite expectations of a recovery over the next 12-24 months, it added. "In

Sovereign bonds & credit ratings

At the end June 2019, the RBI's foreign exchange (FX) reserves amounted to about $422 billion. This is around 15 per cent of GDP way below the 26 per cent of GDP level of FX reserves in 2007-08

Don't go by credit rating alone, consider default analysis, performances

Look up performance parameters: Investors should look up a metric called credit default analysis, available on rating agencies' websites, to compare performance vis-a-vis their peers

India, Russia to develop 'independent' credit rating industry

India and Russia today vowed to develop a credit rating industry that is "independent from political conjecture" -- a move that follows apprehensions about global agencies being biased towards large economies like the US and China. In a joint declaration, Prime Minister Narendra Modi and Russian President Vladimir Putin also said they would also explore harmonisation of the respective laws in the two countries regarding credit ratings. The move assumes significance in the wake of several commentators and policy makers in India raising concerns that the global rating agencies have not been upgrading India's sovereign credit rating despite its improving economic and political fundamentals, even as China was viewed favourably by the same agencies. Globally, there are a handful of rating agencies and most of them are headquartered in the US. Most of the agencies including Fitch, S&P and Moody's have given India the lowest investment grade rating -- just a notch above the junk ...

Watch out for credit risk in corporate debt paper

Betting on high-risk debt, investing in an MF with high credit risk can hurt in current environment