Non-cooperation movement of Indian borrowers

Borrowers who stop cooperating hardly bother since there is no real threat and immediate penalty, and some banks are happy to give loans without insisting on ratings

A pandemic has hit Indian rating agencies — INC.

Don’t look at the Greek alphabet. It’s not a new variant of Covid-19. INC stands for Issuer Not Cooperating (with the rating agencies).

Seven credit rating agencies (CRAs) in India have collectively rated 58,720 companies so far. Of these, 1,726 are debt issuers. The rest have got bank loan ratings. Even though they are not listed, ratings are a must for them for accessing credit from banks under Basel II norms. 

The Reserve Bank of India (RBI) has allowed all seven credit rating agencies to rate bank loans after evaluating their ability to conform