InvestorQ : Why was CARE Ratings stock down by 8% on 13 February? Does it have anything to do with the IL&FS rating issue?
Lavanya Subramanian made post

Why was CARE Ratings stock down by 8% on 13 February? Does it have anything to do with the IL&FS rating issue?

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ishika Banerjee answered.
8 months ago
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The fall in the stock price of CARE was largely on the outcome of the forensic audit which clearly brought out that the CEO of CARE, Mainak, had tried to influence the ratings of IL&FS. Despite advice to the contrary, Mainak had used his influence to prevail upon the rating committee to give a healthy rating to IL&FS despite the rating committee pointing out problems with the company. This was apparently done at the behest of IL&FS. The markets were also worried that the regulator could come down heavily on the rating agency for not doing adequate due diligence before assigning the ratings to IL&FS. This also raises the possibility that the penalty levied on the rating agency by SEBI may be much higher since it had failed to warn the stakeholders on time about the impending crisis at IL&FS.

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