Bks can use CareEdge IFSC rtg for risk weighting claims on foreign cos - RBI
This story was originally published at 18:45 IST on 10 July 2025
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--RBI: Bks can use CareEdge IFSC rtg for risk weighting claims on foreign cos
NEW DELHI – The Reserve Bank of India Thursday allowed banks to use the ratings of CareEdge Global IFSC Ltd. for risk weighting their claims on non-resident corporates originating at the International Financial Services Centre.
Banks were earlier permitted to use the ratings of three international credit rating agencies--Fitch, Moody's and Standard & Poor's--for the purpose of risk weighting their claims on different foreign entities for capital adequacy purposes. Risk weighting is the process of assigning different risk levels to various assets based on their potential for loss, which helps determine the amount of capital a bank needs to hold in reserve to cover potential losses from those assets.
As per the central bank, the rating-risk weight mapping for the ratings assigned by CareEdge Global IFSC will be as follows:
| Rating Category | AAA | AA | A | BBB | BB and below |
| Risk weight (%) | 20 | 30 | 50 | 100 | 150 |
End
Reported by Pratiksha
Edited by Akul Nishant Akhoury
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