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.



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