Credit ratings News

Mutual funds have to work on due diligence practices before picking up corporate bonds and should not just rely only on credit ratings given the rising defaults, Sebi chairman Ajay Tyagi said on Thursday.

In order to safeguard small investors' interest, regulator Sebi is planning to put in place a mechanism to ensure prompt and proper disclosure of changes in credit ratings of listed firms, especially those with bad debt.

Government proposes to introduce Priority Sector Lending Certificates (PSLCs), on the lines of carbon credit trading, wherein banks can earn premium for exceeding targets.

Moody said France`s still manageable debt burden justified keeping the rating where it is, even as the country struggles.

India's Sovereign credit rating is expected to remain stable over the next 12-month period, brokerage firm Morgan Stanley said in its research report.

Credit ratings would help micro small and medium industries (MSMEs) to get access to bank finance which had been a perennial problem for these units, an official of Crisil SME Rating said.

Rating agency Moody's Monday said the budget 2014-15 has outlined steps to support faster economic growth, but absence of detailed implementation plan makes it modestly credit positive for India.