Ind-Ra withdraws A1+ rating due to regulatory requirement

14 Mar 2023 , 09:56 AM

In accordance with regulatory requirements, India Ratings and Research (Ind-Ra) has withdrawn the Short-Term Issuer Rating (A1+) of multiple Issuers. All other outstanding ratings, including those on short-term instruments, will be unaffected.

“The withdrawal of the Short-Term Issuer Rating is in accordance with the Securities and Exchange Board of India Operational Circular No. SEBI/HO/DDHS/DDHS-RACPOD2/P/CIR/2023/6 dated 6 January 2023,” said Ind-Ra.

Credit rating agencies are required by this circular to use standardized rating scales and symbols. 

Given that no financial sector regulator has prescribed the Short-Term Issuer Rating Scale, and based on various discussions with SEBI, Ind-Ra is withdrawing its Short-Term Issuer Ratings, said the company in its media release.

The ratings reflect the following factors: an improving deposit and liability profile; a reduction in the agency’s concerns about asset-quality metrics and the bank’s ability to absorb stresses, including the impact of COVID-19; and strengthened capital buffers, stated the rating agency in its media release.

For feedback and suggestions, write to us at [e-mail]