POLICY ON WITHDRAWAL OF RATINGS




Any credit rating assigned by Infomerics Ratings to any debt instrument and/or bank loans/facilities of an entity shall not generally be withdrawn by the company. However, in case the debt instrument is redeemed in full by the Issuer, then Infomerics Ratings shall withdraw the rating based on a written application of the issuer to that effect accompanied by the Certificate from the Statutory Auditor/ Debenture Trustee/Registrar of the Issuer certifying that the rated Instrument has been redeemed in full and further certifying that there are no claims against and/or dues pending or outstanding by the Issuer in respect of the rated Instrument.

Infomerics Ratings shall also withdraw the rating assigned to a debt instrument on a written application made by the Issuer, if

•  The Issuer does not propose to issue the rated debt instrument;;

•  The Issuer is wound up or merged or amalgamated with another Company.

In case of bank loans/facilities, Infomerics Ratings shall withdraw the rating(s) assigned based on a written application of the rated entity in the following circumstances:

•  If the bank loans/facilities are liquidated fully, duly certified the banker(s) of the rated entity, and the rated entity does not want to avail of the bank facilities any more and has surrendered such facilities;

•  The rated entity is wound up or merged or amalgamated with another entity, but there are outstanding bank loans and/or against the bank facilities;

•  If No Objection Certificate is issued by the lending banker(s) of the rated entity even if there are outstanding bank loans and/or against the bank facilities.

In case of Issuer Rating, Infomerics shall withdraw the same based on the request of the issuer/rated entity.

In case of open ended Mutual Fund schemes of Asset Management Company (AMC), Infomerics Ratings shall withdraw the rating assigned based on a written request given by the AMC. Prior to withdrawal, the rating so assigned shall be placed on notice of withdrawal in the company’s website for a period of atleast 30 days.

In all circumstances, Infomerics Ratings shall withdraw the rating(s) provided the Issuer/rated entity shall have paid all the surveillance and rating fees and other amounts in full that are due and payable to Infomerics Ratings. The ratings shall not be withdrawn to avoid negative rating actions.

The Analyst shall prepare a note bringing out the reasons justifying the withdrawal of rating and put it up at the Internal Rating Committee (IRC)/External Rating Committee (ERC) meeting, as per the delegation of authority. In case the withdrawal of rating is sought when there is outstanding under bank loans/facilities and/or under open ended Mutual Fund of AMC, Infomerics Ratings shall review and assign a rating before initiating the withdrawal process. The IRC/ERC shall take an independent decision and the Press Release therefor shall be communicated to the concerned issuer/rated entity and published in the website of Infomerics Ratings as per the format prescribed and guidelines given by SEBI. Such Press Release shall also be sent to the press and the concerned stock exchanges.