The Reserve Bank of India (RBI) vide circular dated October 10, 2022 has permitted banks, Subject to the conditions that the bank’s facility ranks pari passu or senior to the specific rated debt in all respects and the maturity of the unassessed claim is not later than the maturity of the rated claim, to derive risk weights for their unrated exposures based on the ratings available for a specific rated debt.
It is recommended that bank loan ratings to not use the declarations issued by the External Credit Assessment Institutions. These guidelines will take effect on March 31, 2023.
