Eligible Credit Rating Agencies (ECAI)- Review for Brickworks

With reference to the Press Release: 2022-2023/1033 dated October 12, 2022 in terms of which, regulated entities/market participants were advised that in respect of ratings/credit evaluations required in terms of any guidelines issued by the Reserve Bank, no such fresh ratings/evaluations shall be obtained from Brickwork Ratings India Private Limited (the CRA).

The RBI in revision has permitted to banks to use the ratings of the CRA i.e. Brickworks for risk weighting their claims for capital adequacy purposes, subject to the following:

  1. In respect of fresh rating mandates, rating may be obtained from the CRA for bank loans not exceeding Rs.250 crore.
  2. In respect of existing ratings, the CRA may undertake rating surveillance irrespective of the rated amount, till the residual tenure of such loans.

Provided that in case of existing ratings assigned to working capital facilities exceeding Rs.250 crore, the CRA shall undertake rating surveillance only till the next renewal of such facility by the banks.

RBI vide its circular Master Circular DOR.CAP.REC.4/21.06.201/2024-25 dated April 1, 2024 has given the list of eligible credit rating agencies, which banks may use for the purpose of risk weighting their claims for capital adequacy purpose

(a) Acuite Ratings & Research Limited (Acuite)

(b) CARE Ratings Limited;

(c) CRISIL Ratings Limited

(d) ICRA Limited;

(e) India Ratings and Research Private Limited (India Ratings); and (f) INFOMERICS Valuation and Rating Pvt Ltd. (INFOMERICS)