personal finance

Divergence in ratings likely to end soon: SBI


Rating divergence across companies could be a thing of the past, says State Bank of India in its latest report. Recently, markets regulator Sebi had directed all rating agencies to do default probability (PD) benchmarking for AAA, AA and A rating categories. The SBI study found that there are divergences on PD across rating firms. Sebi’s approach would bring in tighter credit assessment, comparability of ratings across issuers, combined with detailed appraisal and assessments to look at credit quality of each loan proposal, notes Soumya Kanti Ghosh, group chief economic advisor at SBI.

sbi-graph





READ SOURCE

READ  Buyer can't wait indefinitely for flat, says SC on seven-year delay

Leave a Reply