Rating agency Brickwork, on October 14, said it did not receive any order from market-regulator Securities and exchange board of India (SEBI) on cancellation of its rating license.
"There is no order from SEBI for the cancellation of our Ratings license," a statement from Brickwork rating said. "We wish to assure all our stakeholders that it is business-as-usual on all fronts for Brickwork," the Brickwork statement added.
The statement came in the backdrop of a media report that said SEBI will cancel the permit of Brickwork ratings due to repeated rating lapses.
"There have been some speculative media reports recently about regulatory action on Brickwork Ratings...Brickwork Ratings is a professionally managed organization with a high level of operational independence, providing the market and investors with the ratings of the highest credibility," the agency said.
"Brickwork has always followed the highest standards for issuing ratings, incorporating strong internal checks and balances," the statement added.
Further, the agency clarified that IL&FS was not rated by Brickwork Ratings and "hence there is no case pending against us for the same." IL&FS was rated by some other large credit rating agencies, it said.
Brickwork is one of the seven SEBI-registered credit rating agencies. The others are Crisil, Care, Icra, Fitch, Infomerics Ratings and Acuité Ratings & Research.
Credit rating agencies are institutions which rate the debt instruments of companies. These ratings are used by investors and companies to take business decisions on a particular corporate.
Canara Bank is the promoter and strategic partner of Brickwork Ratings, according to the company website.
Brickwork ratings was founded by former bankers, credit rating professionals, former regulators and professors, its website says. According to its website, Brickwork Ratings has rated debt instruments ,bonds, securitised papers and bank loans of over Rs 17,67, 366 crore.
Also, Brickwork has rated fixed deposits and commercial papers worth over Rs 71,651 crores. Brickwork operates in ratings of various debt instruments, Securities Receipts, debt mutual funds, Basel bonds and other financial instruments, according to the website.