|The policy on suspension of bank loan ratings as required by RBI (placed below) is superseded by updated policy on non-cooperation as required under SEBI circular SEBI/HO/MIRSD/MIRSD4/CIR/P/2016/119 dated November 01, 2016.|
The Reserve Bank of India vide its circular DBOB.BP.No./3523/21.06.007 dated September 5, 2014 has asked accredited External Credit Assessment Institutions to disclose their rating suspension policy for bank loan ratings on their website. This document explains the policy that Ind-Ra follows for suspension of Bank Loan Ratings.
India Ratings' Code of Conduct, available at www.indiaratings.co.in, states that if a rating committee concludes that the agency lacks sufficient information to maintain the rating or that any information provided by the issuer is unreliable, Ind-Ra reserves the right to withdraw the rating(s). Ind-Ra will continue to maintain the rating(s) on issuers with outstanding facilities where information in the public domain is adequate in its opinion, it will withdraw the rating(s) when information is considered inadequate. However, Ind-Ra may provide a period of up to six months for the issuer during which time these rating(s) would be classified under the "suspended" category. Such ratings will appear with a "suspended" suffix attached to the rating level on Ind-Ra’s website and other publications.
In the event a public rating is migrated to the suspended category, Ind-Ra shall publish an appropriate commentary that includes the current rating(s) and states that the rating(s) has/have been migrated to that category and Ind-Ra will no longer provide the ratings or analytical coverage of the issuer. Further as part of the commentary, Ind-Ra will also disclose the reason for the migration of the rating(s) to the suspended category. However, in the event the issuer starts furnishing information during the suspension period, the rating(s) could be re-activated and any rating action will be communicated through a "Rating Action Commentary".