Eligible credit rating agencies

Credit rating turn to a an important aspect of business as many clients,banks and other financial as well as other institutions wants the company or firm is credit rating. In the credit rating the agencies audit all the financially as well as business growth to give the company or firm rating. The rating is basically 1 to 5. 

Reserve Bank of India issued the list of eligible credit rating agencies which mean the banks will follow only these agencies rating. RBI issued a circular no. 41 dated 13 September 2012 about the eligible credit rating agencies which is as under.

  RBI/2012-13/205
DBOD.No.BP. BC.41/21.06.009/2012-13
September 13, 2012
The Chairman / CMD / MD / CEO
All Scheduled Commercial Banks
(Excluding Local Area Banks and Regional Rural Banks)
Dear Sir,
Prudential Guidelines on Capital Adequacy and Market Discipline- New Capital Adequacy Framework (NCAF) - Eligible Credit Rating Agencies – SME Rating Agency of India Ltd. (SMERA)
Please refer to the Master Circular DBOD.No.BP.BC.16/21.06.001/2012-13 dated July 2, 2012 on 'Prudential Guidelines on Capital Adequacy and Market Discipline - New Capital Adequacy Framework (NCAF)'.
2. In terms of para 6 of the circular, five domestic credit rating agencies viz. CARE, CRISIL, FITCH India, ICRA and Brickwork 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 these domestic credit rating agencies have been mapped to the appropriate risk weights applicable as per the Standardised Approach under the Basel II Framework.
3. It has now been decided that banks may also use the ratings of the SME Rating Agency of India Ltd. (SMERA) for the purpose of risk weighting their claims for capital adequacy purposes in addition to the existing five domestic credit rating agencies. The rating-risk weight mapping for the long term and short term ratings assigned by SMERA will be the same as in case of other rating agencies.
Yours faithfully,
(Deepak Singhal)
Chief General Manager-in-charge
Tags-eliible credit rating agencies,credit rating agencies name,name of credit rating agencies
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