In a bid to improve the transparency in the Indian securitization market, rating agency Crisil has enhanced disclosure standards on securitization transactions’ ratings.  Accordingly, the new standards would incorporate a detailed scenario analysis impact on credit protection measure under different assumptions. Similarly, performance details and track record of various counterparties involved in the transactions and similar asset pools would be analyzed to facilitate comparisons. 

“Recent global experience underscores the importance of improving both the quantity and quality of information available to investors. As a proactive step Crisil is implementing these measures in the domestic market, where the performance of securitization transactions has been far better and more stable than in global markets,” said Prasad Koparkar, head-structured finance ratings, Crisil.  Source: Business Standard

BIIA Newsletter March 2009 Issue