ICRA to rate creditworthiness of Vijay Bank's borrowers

Mumbai, June 19 (UNI) Credit rating agency, ICRA today announced that they have inked an Memorandum of Understanding (MoU) with Bangalore-based nationalised bank, Vijaya 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 Vijaya-ICRA (NSIC- ICRA) Performance and Credit Rating Scheme for SSIs. The SME ratings on the other hand will be assigned under the ICRA-SME Rating Scale, the agency said in a regulatory filing.

To assist potential and existing SSI and SME borrowers of Vijaya Bank in obtaining ratings, the Company is offering special terms to borrowers covered by the MoU. The MoU between the Company and Vijaya Bank seeks to deliver a number of benefits to the bank as well its borrowers.

For Vijaya Bank, the company 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 deals.

As for as Vijaya Bank's borrowers are concerned, they would be able to obtain the company ratings at a relatively low cost. The company rating may also place the rated entity in a superior position in terms of faster loan processing and to obtain competitive credit terms from Vijaya Bank, ICRA explained.

UNI