The regulator of commodities and security markets, SEBI has asked credit rating agencies not to consider the delay in repaying the loan principal or interest during the lockdown as default. SEBI has taken this step in view of the announcement of a three-month exemption in payments by the Reserve Bank. Keeping in mind the ease of doing business in the present situation, the Reserve Bank has given this exemption.
SEBI said in its circular, "If the credit rating agency in its assessment feels that the delay in repayment of principal or interest is due to the lockdown and the current crisis, then the agency should not consider it a default." This can also be done in case of payment rescheduling before the last date.
The rating agency can grant such relief until the period of exemption from the Reserve Bank. SEBI says that in the event of the current lockdown, there may also be delays and irregularities in the information received by rating agencies through different channels. In such a situation, relief has also been given in the deadline to give ratings to agencies or issue press releases in this regard.
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