SEBI has issued a Consultation on Draft Amendment to Master Circular for Credit Rating Agencies (CRAs) dated May 16, 2024. It is proposed that CRAs shall frame a policy in respect of upgrade of default rating to investment grade rating and place it on its website.
The policies framed include scenarios like technical defaults, change in management, acquisition by another firm, sizeable inflow of long-term funds or benefits arising out of a regulatory action, etc. which fundamentally alter the credit risk profile of the defaulting firm.
The comments/ suggestions should be submitted latest by August 15, 2024, through the online web-based form.
