NLC India Informs Exchanges About Credit Rating Agency Transition, Cites Unauthorized Continuation by Brickwork
New Delhi: NLC India Limited (NLCIL), a Navratna public sector enterprise, has formally informed the stock exchanges about a transition in its credit rating agencies and highlighted an ongoing issue with Brickwork Ratings India Private Limited (BWR).
Key Details of the Communication:
In a regulatory filing under SEBI Regulation 30, NLCIL clarified the status of credit ratings for its ₹500 crore Non-Convertible Debentures (NCDs) with ISIN INE589A08043.
Rating Agency Reassignment:
The company has officially reassigned the rating of this instrument to two other SEBI-approved credit rating agencies:
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India Ratings & Research Private Limited – Assigned on March 26, 2025.
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CRISIL – Has been the continuing rater since the instrument's inception. Latest rationale issued on September 3, 2025.
Issue with Brickwork Ratings (BWR):
NLCIL stated that it had requested the withdrawal of the credit rating assignment from Brickwork Ratings as early as February 21, 2023. The company also furnished the required No Objection Certificates (NOCs) from the concerned Debenture Trustees to BWR to facilitate this withdrawal.
Despite this, Brickwork Ratings is continuing to publish a rating rationale for the NCDs, citing its "technical requirements." NLCIL's filing explicitly notes this continuation is against its formal request for withdrawal.
Context and Significance:
Credit ratings are critical for investor perception and the cost of borrowing for companies. A clear and unambiguous rating framework, with the company's chosen agencies, is essential for market transparency. NLCIL's filing aims to ensure that investors and the market rely on the ratings provided by its current, officially appointed agencies—India Ratings and CRISIL—and not the one it sought to discontinue.
The company has directed stakeholders to the respective credit rating agencies' websites for the official and current ratings.
About NLC India Limited:
NLC India Limited, a 'Navratna' CPSE under the Ministry of Coal, is a major player in power generation and mining. The company's corporate office is in Neyveli, Tamil Nadu.