Challenges envisaged Against the above background and the complexities involved as also the areas of “constructive ambiguity” in concepts and their application we envisage the following regulatory and supervisory challenges ahead: •  India has three established rating agencies in which leading international credit rating agencies are stakeholders and also extend technical support.
However, the level of rating penetration is not very significant as, so far, ratings are restricted to issues and not issuers. While Basel II gives some scope to extend the rating of issues to issuers, this would only be an approximation and it would be necessary for the system to move to ratings of issuers. Encouraging ratings of issuers would be a challenge.