Urvashi jainurvashi jain asked 2 years ago

Provision: Whether an asset finance company having capital to risk asset ratio less than 15% or an investment company or a loan company as defined in para 21(1)(ia),(vi) and (viii) repectively of NBFC Acceptance of Public Deposits(RBI) directions,1998 is accepting ”public deposits” without MINIMUM INVESTMENT GRADE CREDIT RATING FROM AN APPROVED CREDIT RATING AGENCY

1 Answers
RaviRavi Staff answered 2 years ago

specified companies who are accepting public deposits in such companies auditor has to comment whether these companies are having MIGR rating from  credit rating agency
credit rating agencies have specified MIGR rating, that means if deposits have this minimum rating then only investor should think of investing in them. 
Below is example for the same, so if they dont have MIGR and still raising deposits, then auditor will have to report

Name of rating agencies
Nomenclature of minimum investment grade credit rating (MIGR)

CRISIL
FA- (FA MINUS)

ICRA
MA- (MA MINUS)

CARE
CARE BBB (FD)

FITCH Ratings India Pvt. Ltd. 
tA-(ind)(FD) Equal to  NOF

It may be added that A- is not equivalent to A, AA- is not equivalent to AA and AAA- is not equivalent to AAA. 

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