ICRA signs MoU with Corporation Bank to rate SSI, SME borrowers

New Delhi, June 14 (UNI) Credit Rating Agency ICRA Ltd today entered into a Memorandum of Understanding with Mangalore-based Corporation Bank to assign ratings to Small Scale Industries (SSIs) and Small and Medium Enterprises (SMEs) that are borrowers of the bank.

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

The SME ratings on the other hand will be assigned under the ICRA-SME Rating Scale. To assist potential and existing SSI and SME borrowers of Corporation Bank in obtaining ratings, the company is offering special terms to borrowers covered by the MoU.

For Corporation Bank, the ratings would serve as an objective and scientific input in decision making, assist in risk pricing, serve as an input for setting collateral requirements for borrowers and facilitate future CBO / CLO deals.

As for Corporation Bank's borrowers, they would be able to obtain the ratings at a relatively low cost.

The rating may also place the rated entity in a superior position in terms of faster loan processing and to obtain competitive credit terms from Corporation Bank.

UNI