"(CE)" after a rating, as in "AA (CE)", means the rating depends on credit enhancement from a third party, such as a guarantee from a parent company or a bank. Without it, the bond would be rated lower.
SEBI requires agencies to add the CE suffix whenever a rating relies on support from someone other than the issuer, and to publish the rating the bond would have without that support (the "unsupported rating"). Compare the two: a large gap shows how much the bond relies on the guarantor.
Read the guarantee terms in the offer document: whether it is unconditional, how quickly the guarantor must pay, and whether the guarantor's own rating has changed. If the guarantor is downgraded, the CE rating usually follows. "(SO)", structured obligation, is used for securitised instruments whose payment depends on a pool of loans.
Related
Related terms: Credit rating · Secured NCD · Debenture trustee
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This page is for information only. It is not investment advice, a credit rating or a recommendation to buy, sell or hold any security. Facts are taken from the issuer's own documents and the sources linked on this page; check them with the source before investing.
