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SEBI tightens norms for provisional rating by credit rating agencies


SEBI tightens norms for provisional rating by credit rating agencies
PTI
The Securities and Exchange Board of India (SEBI) has strengthened the regulations for provisional rating for debt instruments by credit rating agencies.
As per the new norms, all provisional ratings for debt instruments shall be prefixed as Provisional before the rating symbol in all communications including rating letter, press release or rating rationale among others.
A rating shall be considered as provisional, and not final, when it is contingent upon execution of letter of comfort, corporate guarantee, or other forms of explicit third-party support and execution of documents such as debenture trust deed/ debenture trustee agreement, legal agreements/opinions, representations and warranties, final term sheet, among others. ....

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