1.

How Does A Rating Agency Operate When Issuers' Disclosure Levels Are Low ?

Answer»

An ACCURATE assessment of the credit rating of an entity depends on the availability of adequate and reliable information on the rated entity. Moreover, CRISIL ratings are under continuous surveillance over the life of the instrument which necessitates that CRISIL has continuous access to adequate and reliable information on the rated entity to ensure that its rating reflects the most recent credit opinion. Absence of information significantly affects the ABILITY to make accurate assessment of business, financial and management risk of an entity which drives the credit rating. 'Information Availability - a key risk factor in credit ratings'.

In CASE the rated entity does not provide i information and/or does not facilitate meetings with key personnel required for rating, that entity may be classified as non-cooperative. For entities classified as non-cooperative, CRISIL Ratings will continue to review the ratings on an ongoing basis throughout the instrument/facility’s lifetime, on the basis of best available information.

An accurate assessment of the credit rating of an entity depends on the availability of adequate and reliable information on the rated entity. Moreover, CRISIL ratings are under continuous surveillance over the life of the instrument which necessitates that CRISIL has continuous access to adequate and reliable information on the rated entity to ensure that its rating reflects the most recent credit opinion. Absence of information significantly affects the ability to make accurate assessment of business, financial and management risk of an entity which drives the credit rating. 'Information Availability - a key risk factor in credit ratings'.

In case the rated entity does not provide i information and/or does not facilitate meetings with key personnel required for rating, that entity may be classified as non-cooperative. For entities classified as non-cooperative, CRISIL Ratings will continue to review the ratings on an ongoing basis throughout the instrument/facility’s lifetime, on the basis of best available information.



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