ICRA enters into MoU with UCO Bank for rating for SSI, SME Borrowers

ICRA Ltd has announced that the Company and UCO Bank a premier nationalised Bank headquartered in Kolkata have signed a Memorandum of Understanding (MoU) under which the Company will assign ratings to Small Scale Industries (SSIs) and Small and Medium Enterprises (SMEs) that are borrowers of the above Bank.

The SSI ratings will be carded out under the National Small Industries Corporation-ICRA (NSIC-ICRA) Performance and Credit Rating Scheme for SSIs. The SME ratings on the other hand will be assigned under the ICRA-SME Rating Scale. To assist potential and existing SSIs and SMEs borrowers of UCO Bank in obtaining ratings, the Company is offering special terms to borrowers covered by the MoU.

The MoU between the Company and UCO Bank seeks to deliver a number of benefits to the bank as well its borrowers. For UCO Bank, the Company ratings would serve as an objective and scientific input in decision making, assist in risk pricing; serve as an input for setting collateral requirements for borrowers; and facilitate future CBO/CLO deals.

As for UCO Bank's borrowers, they would be able to obtain the Company ratings at a relatively low cost. An the Company rating may also place the rated entity in a superior position in terms of faster loan processing and obtaining competitive credit terms from UCO Bank. These ratings may also enable borrowers to convey their standing to their own customers, suppliers, collaborators and other stakeholders. Additionally, the ICRA-rated entities would be able to use the Company's rating report for internal benchmarking and self-improvement.

Source : Equity Bulls

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