RBI criticises credit rating agencies for inaccurate rating of low performing companies affecting investors

Reserve Bank of India has criticised credit rating agencies (CRAs) for allowing low-rated companies to do "rating shopping". In the 25th edition of the Financial Stability Report, RBI has warned of 'rating shopping' by companies for long-term bank loans based on indicative ratings given by CRAs which are not available to the banks or investors. Rating agencies have been largely blamed for their lax policies and oversight for the 2008 global financial crisis. S...