Last Reviewed On: December 30, 2016

Instruments/issues/bank facilities with pre-defined repayment schedule

Acuité will withdraw the Credit Rating of instruments/issues/bank facilities that have a pre-defined repayment schedule such as term loans or bonds only if the obligations pertaining to such loans are no longer outstanding, having been fully repaid or redeemed, subject to the following conditions:

1. Receipt of a written application for withdrawal from the rated entity
2. Full payment of all dues till the proposed date of withdrawal
3. Written confirmation from the Rated Entity’s bankers, auditors, and/ or debenture trustees
4. No Objection Certificate (NOC) from all the lenders in case of Term Loans

Fixed Deposits

Acuité will withdraw the Credit Rating of fixed deposits on receipt of a written request of withdrawal accompanied by a letter from statutory auditors of the rated entity certifying and a Board resolution confirming:

1. the deposits are fully repaid; or
2. the Rated Entity has set aside in an escrow account, an amount that is adequate for the payment of principal and interest with a commitment to service the depositors on the due dates; or
3. the Rated Entity has stopped using the Credit Rating to mobilize further deposits and has informed depositors about the same and has given an explicit option to prematurely withdraw the deposits

The Credit Rating is placed on ‘Notice of Withdrawal’ for six months, before being withdrawn at the end of the withdrawal notice.

Merger / Winding up / Amalgamation of Rated Entities

Acuité withdraws a Credit Rating in case the Rated Entity is wound up or merged or amalgamated with another entity upon receiving a copy of the court order that the rated entity is wound up / amalgamated / merged with another entity.

Provisional Ratings

If the proposed structure considered at the time of rating the transaction, is significantly different from the actual issuance, or when the issuer fails to comply with the documentation requirements stipulated at the time of assigning the provisional rating, Acuité may withdraw the provisional rating. Provisional ratings may also be withdrawn when the issue is not placed subject to availability of necessary supporting documents to that effect.

Instruments / Facilities that are Perpetual or have No Schedule Repayment Dates (such as working capital, bank loan facilities and debt mutual fund schemes)

All such instruments will be rated by Acuité for a period of at least 3 years before a withdrawal request from the rated entity can be accepted by Acuité. Further, these ratings can be withdrawn after placing them on Notice of Withdrawal for 90 days. In addition, for bank loan facilities, the period of Notice of Withdrawal will begin from the date of receipt of No Objection Certificate (NOC) from all the lenders (certified by an officer of level of Deputy General Manager or equivalent). For credit quality ratings of debt mutual fund schemes, the period of Notice of Withdrawal will begin from the receipt of request of withdrawal from the Asset Management Company.