ICRA ties up with Syndicate Bank

New Delhi, Feb 8 (UNI) Credit rating agency ICRA Ltd today tied-up with Manipal-headquartered Syndicate Bank to assign ratings to small scale industries (SSIs) and small and medium enterprises (SMEs), who are borrowers of the bank.

The MoU also envisages ICRA assigning 'line of credit' ratings to term loans given by the bank to its non-SME borrowers including both infrastructure and manufacturing companies.

The SSI ratings will be carried out under the National Small Industries Corporation-ICRA (NSIC-ICRA) Performance and Credit Rating Scheme for SSIs.

The SME and line of credit ratings on the other hand will be assigned under the ICRA-SME rating scale and the ICRA line of credit rating scale respectively.

The bank expects the ratings to serve as a scientific input in decision making, assist in risk pricing, setting collateral requirements for borrowers, facilitate future CBO/CLO deals, and help in meeting Basel norms for relating capital to associated risks.

The agency rates rupee-denominated debt instruments issued by entities including corporates, NBFCs, financial institutions, public sector undertakings and municipalities, among others. The financial instruments include bonds and debentures, fixed deposit schemes, commercial papers, certificates of deposit and preference shares.

UNI