Credit Rating – Applicable for Infrastructure Investments

Last updated: 06 January 2021

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The Insurance Regulatory and Development Authority of India (IRDAI) has issued new guidelines regarding credit ratings for infrastructure investments. Insurers must now classify infrastructure investments from companies rated 'A' or higher, with an Expected Loss Rating of 'EL1', as 'Approved Investments'. Any downgrade below these thresholds will result in re-classification to 'Other Investments'.

Insurance Regulatory and Development Authority of India Ref. No: IRDAI/FI/CIR/INV/008/01/2021 Date:05-01-2021 CIRCULAR Credit Rating Applicable for Infrastructure Investments In exercise of powers under Regulation 14(2) of theIRDAI (Investments) Regulations, 2016the Authority directs Insurers to classifyInfrastructure investments,issued by Infrastructure Companies, rated not less thanAalong withan Expected Loss Rating ofEL1as part of Approved Investment and should be listed under

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1 Year PLAN

1999

(Excl. of GST ₹359)

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2 Years PLAN

3499

(Excl. of GST ₹629)

3 Months PLAN

999

(Excl. of GST ₹179)

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FAQ :

Infrastructure investments must be issued by companies rated not less than 'A' and have an Expected Loss Rating of 'EL1' to be classified as 'Approved Investments'.

If an infrastructure investment is downgraded below 'A' or 'EL1', it must be re-classified as 'Other Investments'.

Approved infrastructure investments are listed under Category Code 'IELB'.

Re-classified infrastructure investments are reported under Category Code 'IOEL'.

These investments should be valued either as per FIMMDA or at applicable market yield rates published by any SEBI-registered Rating Agency.

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Notification No : Ref. No: IRDAI/F&I/CIR/INV/008/01/2021
Published in Miscellaneous
Source : https://www.irdai.gov.in/admincms/cms/whatsNew_Layout.aspx?page=PageNo4331&flag=1

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