January 6, 2020

Bank Loan Facilities

Acuité will withdraw the Credit Rating of bank facilities, subject to the following conditions:

1. Receipt of a written application for withdrawal from the rated entity
2. No Objection Certificate (NOC) from all the lending banks OR from the lead bank, in such capacity (in case of consortium banking) as applicable. In case of change of bank, Acuite may rely on "Satisfaction of Charges” available on the website of Ministry of Corporate Affairs (www.mca.gov.in) in lieu of NOC.
3. Full payment of all dues, if any, to Acuité

At the time of withdrawal, Acuité shall issue a press release as per the format by SEBI. The Press Release shall also mention the reason(s) for withdrawal

Bonds / Debentures

A. As per SEBI Circular SEBI/ HO/ MIRSD/ DOP2/CIR/P/2018/ 95 dated June 6, 2018, Acuité will withdraw the Credit Rating on Bonds / Debentures, based on a written request from the issuer and subject to the following conditions:

1. Acuité has rated the instrument continuously for 5 years or 50 per cent of the tenure of the instrument, whichever is higher.
2. Acuité has received an undertaking from the Issuer that a rating is available on that instrument.

B. Notwithstanding what is stated in point A. above, as per SEBI Circular SEBI/HO/MIRSD/CRADT/CIR/P/2020/2 dated January 03, 2020, in case of multiple ratings on an instrument (where there is no regulatory mandate for multiple ratings), Acuite will withdraw the Credit Rating on Bonds / Debentures, based on a written request from the issuer and subject to the following conditions:

1. rated the instrument continuously for 3 years or 50 per cent of the tenure of the instrument, whichever is higher; and
2. received No-objection Certificate (NOC) from 75% of bondholders of the outstanding debt for withdrawal of rating; and
3. received an undertaking from the issuer that another rating is available on that instrument.

At the time of withdrawal, Acuité shall issue a press release as per the format prescribed by SEBI. The Press Release shall also mention the reason(s) for withdrawal.

Acuité will withdraw the Credit Rating on Commercial Paper / Short Term Instruments, subject to the following conditions:

1. Receipt of a written application for withdrawal from the rated entity
2. Written confirmation of ‘Nil’ outstanding on the rated instrument from the Rated Entity’s Auditors OR Issuer and Paying Agent (IPA)
3. Full payment of all dues, if any, to Acuité

At the time of withdrawal, Acuité shall issue a press release as per the format by SEBI. The Press Release shall also mention the reason(s) for withdrawal

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.

Merger / Winding up / Amalgamation of Rated Entities

Acuité shall withdraw 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.

At the time of withdrawal, Acuité shall issue a press release as per the format by SEBI. The Press Release shall also mention the reason(s) for withdrawal

Applicable in all instances of Rating Withdrawals notwithstanding the rated instrument / facility:

Acuite will seek:

1. Updated business information, financial statements (Audited / Provisional as applicable) & any other information it considers important / critical and management interaction. 
2. Payment of dues, if any, to Acuité

In case of non-cooperation by the rated entity with respect to any one or both of the above requirements, the rating(s) may be suffixed with "Issuer Not Cooperating” and simultaneously withdrawn.