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Minimum Two Credit Ratings Mandatory for Corporate Bond PCE: RBI
May 25, 2017
Changing the framework of the Partial Credit Enhancement (PCE) RBI has now make it mandatory for the businesses to get credit ratings from two different agencies for corporate bonds throughout their lifetime. The reports should also provide one credit rating without considering the PCE effects and a separate credit rating considering the same.
Companies use PCE to improve the rating of their corporate bonds and raise more funds from the bond market. RBI first allowed the banks to offer PCE to companies in October 2013 to promote bond investments.
