Policy on Withdrawal of Ratings

Last Reviewed On: July 17, 2018 (Version 3)

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, as applicable
  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

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, 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.

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.

Commercial Paper / Short Term Instruments

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The Credit Rating is placed on ‘Notice of Withdrawal’ for six months, before being withdrawn.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.

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Our exciting journey started in 2005 with rating of bank borrowers most of whom were small and medium enterprises. At that time, credit rating was a concept known only to large issuers of capital market instruments. Since then, like a caterpillar transforms itself into a beautiful butterfly, we transformed to rate bonds, bank facilities of large corporates and issuers across industries. Along came many achievements - SEBI Registration in 2011, RBI accreditation in 2012, 50,000 ratings in 2018, 5,000 Bond and Bank Loan Ratings in 2017, launch of India's first Android and iPhone app to disseminate rating, tamper-proof QR-code-enabled rating rationales, and SMERA Terminal to name a few.

Now is the time to re-emphasize our increasing footprint across all segments of ratings through the launch of our new name - 'Acuité'.

The name has changed. The spirit of upholding highest standards of analytical rigour, continuous improvement, excellence in our processes and quest for innovation remains the same. We would like to re-emphasize that we will continue to work hard to provide independent, unbiased and timely opinion of highest standard.

Acuité means 'sharpness and clarity of thought and vision'. Let our research and ratings help you take decisions with confidence.


Sankar Chakraborti
CEO