POLICY FOR PLACING RATINGS ON RATING WATCH - Archive

Archive 3

There are many developments that may take place in the affairs and functioning of various rated entities, whose implication on debt servicing ability of such entities may have to be further evaluated & measured. These developments include announcement for merger, demerger, taking over of a company, announcement/ implementation of a large project, sale or acquisition of equity stake in the company, change of management, resignation of a key managerial personnel etc.

In such cases, Infomerics initiates review exercise with a view to measure the impact of such developments on the future debt servicing ability of the company. Wherever Infomerics feels that measurement of the impact of the development requires further information and believes that such measurement might result into change in rating, Infomerics places such rating under Rating Watch. Such rating watch may be for positive implication or negative implication or where the direction of the implication is not predictable, then the rating may be kept on rating watch with a developing implication.

Once the desired information is received and evaluation exercise is over, the matter is put up before the RC by way of a detailed note for review of the rating. At that point of time, the rating watch is removed, and the appropriate rating is assigned. It may be noted that placing ratings on rating watch does not always mean an imminent change in rating. The time frame for resolving ratings under rating watch would generally be ranging between 45 to 90 days.

*Policy Of Placing Ratings on Rating Watch (Version III) is approved in the BM dated 28th  December 2022.

 

Archive 2

There are many developments that may take place in the affairs and functioning of various rated entities, whose implication on debt servicing ability of such entities may have to be further evaluated & measured. These developments include announcement for merger, demerger, taking over of a company, announcement/ implementation of a large project, sale or acquisition of equity stake in the company, change of management, resignation of a key managerial personnel etc.

In such cases, Infomerics initiates review exercise with a view to measure the impact of such developments on the future debt servicing ability of the company. Wherever Infomerics feels that measurement of the impact of the development requires further information and believes that such measurement might result into change in rating, Infomerics places such rating under Rating Watch. Such rating watch may be for positive implication or negative implication or where the direction of the implication is not predictable, then the rating may be kept on rating watch for a developing implication.

Once the desired information is received and evaluation exercise is over, the matter is put up before the RC by way of a detailed note for review of the rating. At that point of time, the rating watch is lifted and the appropriate rating is assigned. It may be noted that placing ratings on rating watch does not always mean an imminent change in rating. The time frame for resolving ratings under rating watch would generally be ranging between 45 to 90 days.

*Policy Of Placing Ratings on Rating Watch (Version II) is approved in the BM dated 01st February 2022.

Last Updated - February 2022
 

Archive 1

There are many developments take place in the affairs and functioning of various rated entities, the ultimate implication of the same on debt servicing ability of such entities may not be evaluated & measured instantly in view of many uncertainties and non-happening of many related events. At times, the evaluation & measurement of the aforesaid implications is a time consuming affair and hence, Infomerics may not take a call about the rating immediately. These developments include announcement for merger, demerger, taking over of a company, implementation of a large project, sell or acquisition of equity stake in the company, change of management, resignation of a key managerial personnel and so on.

In such cases, Infomerics initiates review exercise with a view to measure the impact of such developments on the future functioning & debt servicing of the company. Wherever Infomerics feels that measurement of the impact of the development will take time and believes that such measurement might result into change in rating, Infomerics puts such rating under Rating Watch, duly approved by its Rating Committee (RC).

Such rating watch may be for positive implication or negative implication or where the direction of the implication is not predictable, then the rating may be kept on rating watch for a developing implication.

Once the evaluation exercise is over, the matter is put up before the RC by way of a detailed note for review and reassignment of the rating. At that point of time, the rating watch is lifted and the appropriate rating is assigned.