Moneylife » newsviewer » companies-sectors »
rbi-announces-standard-rating-symbols-for-banks
RBI announces standard rating symbols for banks
October 14, 2011 08:28 AM |
Moneylife Digital Team
The change in rating symbols and definitions, however, does not
effect, in any manner, the rating methodology followed by the credit
rating agencies (CRAs) for rating such instruments and will have no
bearing on the existing ratings assigned by the CRAs under the
Basel-II framework, the RBI said in a statement
Mumbai: The Reserve Bank of India (RBI) on Thursday announced uniform
and standard rating symbols to be used for indicating financial health
of a bank, reports PTI.
The change in rating symbols and definitions, however, does not
effect, in any manner, the rating methodology followed by the credit
rating agencies (CRAs) for rating such instruments and will have no
bearing on the existing ratings assigned by the CRAs under the
Basel-II framework, the RBI said in a statement.
Under the revised standardised system, there is no change in the long
term rating symbols except that they will henceforth display the
rating agency's name as a prefix, it said.
"In case of short term ratings, a rating scale denoted by `A' on a
scale of `1' to `4' (i.e. A1, A2, A3 and A4) and `D' has been
prescribed," it said.
Four domestic CRAs namely CARE, CRISIL, FITCH India and ICRA have been
accredited for the purpose of risk weighting the banks' claims for
capital adequacy purposes.
The long term and short term ratings issued by the chosen domestic
credit rating agencies have been mapped to the appropriate risk
weights applicable as per the standardised approach under the Basel II
framework.
In June this year, capital market regulator Securities and Exchange
Board of India (SEBI) had asked CRAs to adopt standard symbols and
definitions to help investors to understand better the financial
health of firms.
The four accredited CRAs, which are registered with SEBI, have
therefore revised their rating symbols of long term and short term
debt instruments
rbi-announces-standard-rating-symbols-for-banks
RBI announces standard rating symbols for banks
October 14, 2011 08:28 AM |
Moneylife Digital Team
The change in rating symbols and definitions, however, does not
effect, in any manner, the rating methodology followed by the credit
rating agencies (CRAs) for rating such instruments and will have no
bearing on the existing ratings assigned by the CRAs under the
Basel-II framework, the RBI said in a statement
Mumbai: The Reserve Bank of India (RBI) on Thursday announced uniform
and standard rating symbols to be used for indicating financial health
of a bank, reports PTI.
The change in rating symbols and definitions, however, does not
effect, in any manner, the rating methodology followed by the credit
rating agencies (CRAs) for rating such instruments and will have no
bearing on the existing ratings assigned by the CRAs under the
Basel-II framework, the RBI said in a statement.
Under the revised standardised system, there is no change in the long
term rating symbols except that they will henceforth display the
rating agency's name as a prefix, it said.
"In case of short term ratings, a rating scale denoted by `A' on a
scale of `1' to `4' (i.e. A1, A2, A3 and A4) and `D' has been
prescribed," it said.
Four domestic CRAs namely CARE, CRISIL, FITCH India and ICRA have been
accredited for the purpose of risk weighting the banks' claims for
capital adequacy purposes.
The long term and short term ratings issued by the chosen domestic
credit rating agencies have been mapped to the appropriate risk
weights applicable as per the standardised approach under the Basel II
framework.
In June this year, capital market regulator Securities and Exchange
Board of India (SEBI) had asked CRAs to adopt standard symbols and
definitions to help investors to understand better the financial
health of firms.
The four accredited CRAs, which are registered with SEBI, have
therefore revised their rating symbols of long term and short term
debt instruments
No comments:
Post a Comment