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1/7 on Issuers-Not-Cooperating with Credit Rating Companies in India
Here's how to imagine the situation:
A student refuses to submit his answer papers to teachers for assessment.
@SEBI_India @RBI @FinMinIndia @CRISILLimited @CARERatings @IndiaRatings @infomerics
Here's how to imagine the situation:
A student refuses to submit his answer papers to teachers for assessment.
@SEBI_India @RBI @FinMinIndia @CRISILLimited @CARERatings @IndiaRatings @infomerics
2/7 School board asks the teachers to continue giving grades to the student as without those grades, people will have even less information about the student.
Left with no choice, teachers start looking at the student's social media posts to give grades.
Left with no choice, teachers start looking at the student's social media posts to give grades.
3/7 Higher the number of grammatically-correct Facebook posts, higher the grades.
Teachers mention in the grades that the student isn't cooperating.
In some cases, with the permission of the student's relatives, teachers stop giving the grades.
Teachers mention in the grades that the student isn't cooperating.
In some cases, with the permission of the student's relatives, teachers stop giving the grades.
4/7 When other students see the system allows them to continue getting good grades without even submitting their answer papers, more students stop cooperating with the teachers.
Eventually, about half the students in the country come under student-not-cooperating category.
Eventually, about half the students in the country come under student-not-cooperating category.
5/7 But when the students with good grades aren't able to perform well on the job, people blame the school board.
And the board promptly blames the teachers. The story continues..
And the board promptly blames the teachers. The story continues..
6/7 Now read these news stories:
https://www.bloomberg.com/news/articles/2020-07-02/rating-firms-seek-to-withdraw-nearly-half-of-india-debt-ratings
“By maintaining the issuer-not-cooperating rating beyond a reasonable period, neither the entity’s nor the investors’ interests are served,” the rating companies wrote in a document submitted to the RBI.
https://www.bloomberg.com/news/articles/2020-07-02/rating-firms-seek-to-withdraw-nearly-half-of-india-debt-ratings
“By maintaining the issuer-not-cooperating rating beyond a reasonable period, neither the entity’s nor the investors’ interests are served,” the rating companies wrote in a document submitted to the RBI.
7/7 The market regulator wants the credit ratings to continue even when issuers aren't cooperating, since withdrawing them would leave investors with even less information, Mint reported citing two people it didn't identify. https://www.livemint.com/companies/news/sebi-wants-ratings-agencies-to-rate-all-issuers-11594341168503.html
