The Securities Exchange Board of India (SEBI) introduced ‘CE’ (Credit Enhancement) as rating suffix for instruments with external credit enhancement among other aspects vide its circular dated 13 June 2019.

India Ratings and Research (Ind-Ra) has changed the suffix to ‘CE’ from ‘SO’ for outstanding ratings of relevant instruments of 81 issuers and has removed the ‘SO’ suffix from ratings of relevant instruments of 35 issuers to comply with the SEBI circular. The change in suffix for these instruments does not result in any change in rating on the said instruments.

The following broad principles shall apply for assigning a ‘CE’ rating suffix in line with the circular and subsequent discussions with the regulator providing additional clarifications:

-         Ratings on instruments which are based on explicit credit enhancement which is external or from a third party in the form of corporate guarantee, letter of comfort or pledge of shares, and the rated instruments which are not bankruptcy remote of the issuer/originator will carry the ‘CE’ suffix. These ratings were earlier, typically assigned an ‘SO’ (Structured Obligation) suffix.

-         For all ratings which are suffixed with ‘CE’, the corresponding unsupported ratings i.e. without factoring in the explicit credit enhancement will also be disclosed in Ind-Ra’s rating action commentary (RAC). This is expected to help the investors understand the extent of credit enhancement provided to the standalone ratings. Unsupported ratings will be assigned during the subsequent rating reviews for ratings with a ‘CE’ suffix; all new ratings with a ‘CE’ will also contain their unsupported ratings. Ind-Ra will also provide details of the covenants of the instrument in the RAC.  

Following broad principle apply for assigning ‘SO’ rating suffixes:

-        Ratings on instruments where the credit enhancement/structure around cash flows leads to rated instrument being bankruptcy remote of the issuer/originator will carry the ‘SO’ suffix.

No suffix shall be applied to ratings where there is
-          no explicit credit enhancement or where there is no payment mechanism/structure around cash flows;
-          presence of payment mechanism and structure around cash flows but the rated instrument is not bankruptcy remote of the issuer; and
-          presence of guarantee structure or structure build around cash flows, but the guarantee or the structure does not enhance the rating of the instrument beyond issuer’s current credit profile.

Refer to the tables below for the list of issuers and instruments with corresponding change in suffix.

Figure 1
Change in Rating Suffix to ‘CE’ from ‘SO’

Name of the issuer

Link to latest ratings

Renew Akshay Urja Limited

Link

Mytrah Vayu (Pennar) Private Limited

Link

Mytrah Vayu (Krishna) Private Limited

Link

Bindu Vayu Urja Private Limited

Link

Hindupur Solar Park Private Limited

Link

Mahabubnagar Solar Parks Private Limited

Link

Polepally Solar Parks Private Limited

Link

Winsol Solar Fields (Polepally) Private Limited

Link

Adani Green Energy (UP) Limited

Link

Parampujya Solar Energy Private Limited

Link

Prayatna Developers Private Limited

Link

ReNew Wind Energy (Jath) Limited

Link

L&T Metro Rail (Hyderabad) Limited

Link

Kaithal Tollway Private Limited

Link

Adani Green Energy (Tamil Nadu) Limited

Link

Ramnad Renewable Energy Limited

Link

Kamuthi Renewable Energy Limited

Link

Ramnad Solar Power Limited

Link

Kamuthi Solar Power Limited

Link

Vishwatma Solar Energy Private Limited

Link

Niranjana Solar Energy Private Limited

Link

Dayanidhi Solar Power Private Limited

Link

Aarohi Solar Private Limited

Link

ACME Jaisalmer Solar Private Limited

Link

IRB Kolhapur Integrated Road Development Company Private Ltd

Link

Jhajjar Power Ltd

Link

International Solar Corporation Private Limited

Link

Kavit Green Energy Private Limited

Link

Earth Solar Power Private Limited

Link

Shining Sun Power (Telangana) Private Limited

Link

Sunheti Solar Projects Private Limited

Link

Pioneer Genco Limited

Link

Pioneer Power Corporation Limited

Link

Lakshmi Jalavidyut (Krishna) Limited

Link

Krishna Hydro Energy Limited

Link

Pioneer Power Limited

Link

Vivid Solaire Energy Private Limited

Link

Gale Solarfarms Limited

Link

Tornado Solarfarms Limited

Link

GRIDCO Limited

Link

Krishna Bhagya Jala Nigam Limited

Link

U.P. Power Corporation Limited

Link

Karnataka Neeravari Nigam Limited

Link

Chhattisgarh State Power Distribution Company Limited

Link

Visvesvaraya Jala Nigam Limited

Link

Haryana Vidyut Prasaran Nigam Limited

Link

India Infrastructure Finance Company Limited

Link

Maharashtra Patbandhare Vittiya Company Limited

Link

Tamil Nadu Generation and Distribution Corporation Limited

Link

Cauvery Neeravari Nigama Limited

Link

Tamil Nadu Transmission Corporation Limited

Link

Konkan Railway Corporation Limited

Link

Karnataka Water and Sanitation Pooled Fund Trust

Link

The Mysore Paper Mills Limited

Link

Air India Express Limited

Link

Air India Limited

Link

Bangalore Airport Hotel Limited

Link

Brilliant Etoile Private Limited

Link

Coastal Gujarat Power Limited

Link

Damodar Valley Corporation

Link

Gail Gas Limited

Link

GMR Aero Technic Limited

Link

GMR Aerospace Engineering Limited

Link

Silica Ceramica Private Limited

Link

Talwandi Sabo Power Ltd

Link

Tata Power Trading Company Limited

Link

ONGC Petro Additions Limited

Link

Oswal Infrastructure Limited

Link

Lifelong Meditech Private Limited

Link

IFMR Capital P.L.I. September 2017

Link

Northern Arc PLI IX

Link

IFMR Capital CEB I 2017

Link

IFMR Capital CEB II 2017

Link

Esskay IFMR Capital CEB III 2018

Link

Northern Arc Capital Esskay SPiCE IV 2018

Link

NCDs by Writers & Publishers Pvt. Ltd

Link

JSW Techno Projects Management Limited

Link

Northern Arc Pooled Bond Issuance XVIII 2018

Link

NCDs by IL&FS Education & Technology Services Limited

Link

Barota Finance Limited

Link

Nupur Finvest Private Limited

Link

Source: Ind-Ra

 

Figure 2
Removal of ‘SO’ Suffix from Rating

Name of the issuer

Link to latest ratings

Mumbai International Airport Private Limited

Link

GP Wind (Jangi) Private Limited

Link

Hazaribagh Ranchi Expressway Limited

Link

Essel Lucknow Raebareli Toll Roads Limited

Link

East North Interconnection Company Limited

Link

West Gujarat Expressway Limited

Link

Jorbat Shillong Expressway Limited

Link

Andhra Pradesh Expressways Ltd

Link

North Karnataka Expressway Ltd

Link

Jharkhand Road Projects Implementation Company Limited

Link

Shillong Expressway Private Limited

Link

Western Transco Power Limited

Link

Godhra Expressways Private Limited

Link

Nagpur Seoni Express Way Limited

Link

NRSS XXXI (B) Transmission Limited

Link

Darbhanga-Motihari Transmission Company Limited

 Link

Mahua Bharatpur Expressways Limited

Link

Dewas Bhopal Corridor Private Limited

Link

SP Jammu Udhampur Highway Limited

Link

Western Transmission (Gujarat) Limited

Link

Punjab Infrastructure Development Board

Link

Punjab State Transmission Corporation Limited

Link

Crest Cellulose Private Limited

Link

Firestar Diamond BVBA

Link

Firestar Diamond FZE

Link

Firestar Diamond Limited, Hong Kong

Link

Mindchampion Learning Systems Limited

Link

Offbeat Developers Private Limited

Link

IOT Utkal Energy Services Ltd - NCDs

Link

K Raheja IT Park (Hyderabad) Limited

Link

Intime Properties Limited

Link

Classic Mall Development Company Private Limited

Link

TSI Business Parks Hyderabad Private Limited

Link

Hamir Real Estate Private Limited

Link

Prima Bay Private Limited

Link

Source: Ind-Ra

 

 
Contacts:

Siva Subramanian
Director, Global Infrastructure
+91 44 4340 1704

Prashant Tarwadi
Director, Large Corporates
+91 22 4000 1772

Dr. Devendra Pant
Senior Director, Public Finance
+91 11 4356 7251

Prakash Agarwal
Director, Financial Institution
+91 22 4000 1753


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Additional information is available at www.indiaratings.co.in. The ratings above were solicited by, or on behalf of, the issuer, and therefore, India Ratings has been compensated for the provision of the ratings. 

Ratings are not a recommendation or suggestion, directly or indirectly, to you or any other person, to buy, sell, make or hold any investment, loan or security or to undertake any investment strategy with respect to any investment, loan or security or any issuer.

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Analyst Names

  • Jatin Nanaware

    Director
    India Ratings and Research Pvt Ltd Wockhardt Towers, 4th Floor, West Wing, Bandra Kurla Complex, Bandra East,Mumbai - 400051
    +91 22 40001761

    Media Relation

    Namita Sharma

    Manager – Corporate Communication
    +91 22 40356121