ICRA signs MoU with Corporation Bank for loan rating

Mumbai: ICRA Ltd has signed a memorandum of understanding (MoU) with Corporation Bank under which the company will assign ratings to the bank's loans and its other exposures under the standardised approach of RBI's new capital adequacy norms for Basel-II, ICRA said in a filing with the Bombay stock Exchange (BSE).

ICRA's ratings for the standardised approach would be carried out under its `Line of Credit' rating service and would enable Corporation Bank to assign the new risk weights applicable to its borrowers under Basel-II. The risk weights would be linked to the various rating categories and would be as per RBI's Basel II guidelines, the company said in a release.

To assist potential and existing borrowers of Corporation Bank in obtaining ratings, ICRA is offering special terms to the clients of Corporation Bank, it said.

The MoU would assist in implementing RBI's new capital adequacy framework under Basel-II.

In another filing with the BSE, Corporation Bank said it has entered into agreements with two credit rating agencies - D&B and Fitch - as well

The bank said it signed an MoU with ICRA and Fitch today and with D&B on Wednesday.