New Delhi :
RBI to look into companies that do not cooperate with credit rating firms
Out of 40,000 companies that have been rated, nearly half of them have not cooperated with credit-rating firms.
The Reserve Bank of India (RBI) has requested credit rating firms to identify companies that are withholding important information necessary to assess a borrower’s creditworthiness.
According to the Economic Times (ET), the country’s central bank is now keen on understanding the extent of this issue. They want to know key information such as how many ratings fall into this category, why these borrowers have not disclosed the required information, and how long they have been uncooperative, among other related details. The majority of such ratings are related to bank loans, which is why the RBI has taken an interest in the matter.
Ref: https://www.business-standard.com/india-news/rbi-to-look-into-companies-that-do-not-cooperate-with-credit-rating-firms-123061200604_1.html
