Bankruptcy Expert Edward Altman Says It’s Too Easy To Get A High Credit Rating In India


#1

Interesting perspective on credit ratings in India.

In the recent past, we have had a number of high-profile snafus in AAA and AA rated bonds.

  • In September 2018, one-day IL&FS was rated AAA and the next it was downgraded 9 notches to default.
  • Most recently DHFL was downgraded from AAA to AA. This happened after the allegations against the companies and subsequent crack in the stock and bond prices.
  • Reliance Home Finance Limited (RHFL) bonds are currently available at yields of 25% to 35%. The company’s bonds are rated AA.

1-month chart of Reliance Home Finance bonds