ICRA in MoU with United Bank of India for ratings

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New Delhi, Nov 23: Rating Agency ICRA Ltd today said it has entered into a Memorandum of Understanding (MoU) with Kolkata-based United Bank of India to assign ratings to the Bank's loans and its other exposures.

ICRA's ratings for the standardized approach would be carried out under its "Line of Credit" rating service and would enable the Bank to assess the new risk weights applicable to its borrowers under Basel-II, a statement said.

The risk weights would be linked to the various rating categories and would be as per RBI's above guideline. To assist potential and existing borrowers of the Bank in obtaining ratings, ICRA is offering special terms to the clients of the Bank covered by the MoU, the statement added.

The MoU seeks to deliver benefits to the Bank as well its clients. For the Bank, ICRA's- Line of Credit ratings would assist in implementing RBI's New Capital Adequacy Framework under Basel-II.

For the client, an ICRA rating may place the rated entity in a superior position in terms of faster loan processing and to obtain competitive credit terms from the Bank. It is expected that the corporate borrowers of the Bank would come forward to avail benefit of the rating system, the statement said.

UNI

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