Bond issues worth Rs 1.31 lakh rated in February

Tags: News
Debt securities by companies worth about Rs 1.31 lakh crore were rated in February, the third-highest level in the first 11 months of the last financial year.

Credit rating agencies assessed 182 long-term corporate debt securities amounting to Rs 1.31 lakh crore in February, latest data with market regulator Sebi showed.

This is the highest figure after Rs 2.09 lakh crore of bonds rated in April 2013 and Rs 1.47 lakh crore in May.

Of the issues rated in February, 106 debt securities (58.2 per cent) amounting to Rs 3,696 crore were categorised as non-investment grade.

The remaining 76 were given investment-grade ratings with highest-to-moderate safety profiles. These cumulatively amounted to Rs 1.27 lakh crore.

Non-investment grade is given to low-quality bonds that face the highest risk of default. Debt securities are issued by companies to raise funds for purposes such as expansion.

The top investment grade of highest safety (AAA) was assigned to 19 issues worth Rs 1.17 lakh crore, while 17 securities valued at Rs 4,003 crore got a high-safety (AA) rating.

Besides, the agencies gave 15 issues an adequate safety (A) grade

and 25 were given moderate safety (BBB) ratings.

During the April-February period of the previous financial year, a total of 2,097 issues worth about Rs 10.98 lakh crore were graded, of which 1,174 issues valued at Rs 29,320 crore were categorised as non-investment grade.

Sebi data was only available till February this year.

As per the process followed by credit rating agencies, the assigned rating is communicated to the issuer for acceptance. If the rating is not acceptable, a review appeal can be filed.

In February, 25 rating downgrades of corporate debt securities worth Rs 8,742 crore were accepted by issuers, as against 23 upgrades amounting to Rs 290 crore.

The rating agencies registered with market regulator Sebi are Crisil, India Ratings and Research (formerly Fitch Ratings India), ICRA, Credit Analysis & Research (CARE), Brickwork Ratings India and SME Rating Agency of India.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • India’s festivals teach us to share our wealth and joy

    India is an aporia in its own true sense.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Sustainable model for rural sanitation

Prime minister Narendra Modi has promised to build a toilet ...

Zehra Naqvi

How smells evoke strong memories

Remember that time when a passing fragrance transported you to ...

Dharmendra Khandal

Indian zoos need a fresh approach

Recently, when a man jumped in a tiger trench of ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture