Rating of Deposits of HFCs – Approved Credit Rating Agencies and Minimum Investment Grade Credit Rating

Last updated: 30 July 2021

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The Reserve Bank of India (RBI) has updated the requirements for deposit-taking Housing Finance Companies (HFCs) regarding credit ratings. These changes align HFC regulations with those already in place for Non-Banking Financial Companies (NBFCs). The update specifies the approved credit rating agencies and the minimum investment grade credit rating required for HFCs to accept public deposits.

RBI/2021-22/74 DOR.FIN.REC.No.34/03.10.136/2021-22 July 29, 2021 All deposit taking Housing Finance Companies (HFCs) Madam/ Dear Sir, Rating of Deposits of HFCs Approved Credit Rating Agencies and Minimum Investment Grade Credit Rating A reference is invited to Para 25.2 ofMaster Direction Non-Banking Financial Company Housing Finance Company (Reserve Bank) Directions, 2021, wherein the names of five approved credit rating agencies and their minimum investment grade credit rat

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FAQ :

This notification updates the list of approved credit rating agencies and their minimum investment grade credit ratings that deposit-taking Housing Finance Companies (HFCs) must adhere to when accepting public deposits.

The approved agencies include CRISIL, ICRA Limited, CARE, Fitch Ratings India Private Limited, Brickwork Ratings India Private Limited, Acuite Ratings & Research Limited, and Infomerics Valuation and Rating Private Limited.

The minimum required ratings vary by agency and include FA- (CRISIL), MA- (ICRA), CARE BBB (FD) (CARE), tA- (ind)(FD) (Fitch), BWR FBBB (Brickwork), ACUITE A (Acuite), and IVR BBB (Infomerics).

The updated provisions for HFCs are aligned with the requirements prescribed for Non-Banking Financial Companies (NBFCs) in their acceptance of public deposits.

Yes, the rating for deposits of HFCs from Brickwork Ratings has changed from BWR FA to BWR FBBB to align with NBFC standards.

Yes, Acuite Ratings & Research Limited and Infomerics Valuation and Rating Private Limited are new credit rating agencies added with their respective ratings for HFC deposits, aligning with NBFC regulations.

Notification No : RBI/2021-22/74 DOR.FIN.REC.No.34/03.10.136/2021-22
Source : https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12134&Mode=0

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