No change in CRISIL rating grades for banks

No change in CRISIL rating grades for banks

The central bank said Wednesday that commercial lenders can use CRISIL grades in determining the capital requirement benchmark after the rating company, also engaged in other advisories, formed a dedicated subsidiary to assess creditworthiness.

“Banks may, therefore, use the ratings of the CRISIL Ratings Limited for the purpose of risk weighting their claims for capital adequacy purposes,” the central bank said.

Rating company Crisil underwent an internal restructuring, a process through which it transferred the rating business of CRISIL Ltd to CRISIL Ratings Ltd.

“The rating-risk weight mapping for the long term and short-term ratings assigned by CRISIL Ratings Limited will be the same as was in the case of CRISIL Limited and there is no change in the rating symbols earlier assigned by CRISIL Limited,” the central bank said.

CRISIL Limited was accredited for the purpose of risk weighting the banks‘ claims for capital adequacy purposes along with other credit rating agencies registered with Securities and Exchange Board of India (SEBI), the capital market regulator.

Capital Adequacy Ratio is one of the key regulatory capital standards that lenders are mandated to maintain.

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