RATING SYMBOLS AND DEFINITIONS OF CREDIT RATING AGENCIES

RATING SYMBOLS AND DEFINITIONS OF CREDIT RATING AGENCIES :

SEBI observed that the Credit Rating Agencies registered with it use different rating symbols and definitions. So there was a need to be common rating symbols and definitions (i) for easy understanding of the rating symbols and their meanings by the investors, and (ii) to achieve high standards of integrity and fairness in ratings. SEBI in consultation with the CRAs and on the recommendation of its Corporate Bonds and Securitisation Advisory Committee, standardised rating symbols and their definitions have been devised for the following :

(a) Long term debt instruments

(b) Short term debt instruments

(d) Short term structured finance instruments

(e) Long term mutual fund schemes and

(f) Short term mutual fund schemes.

Rating symbols should have CRA’s first name as prefix. For Example : CARE AAA, CARE AA etc.