CHENNAI: Finance Minister Nirmala Sitharaman has said the Centre is in consultations with Credit Rating Agencies on their methods of evaluating risk and whether ratings match real-world valuations, particularly in situations where companies with good ratings fail.She was delivering the G Ramachandran Memorial Lecture in remembrance of the famed civil servant, organised by industry body SICCI “I met up with a few of these credit rating agencies to understand if the way in which they rate is consistent with what’s happening in the economy,” the Finance Minister said.Sitharaman said banks are going a churn in assessing risk in order to ensure their functioning is smoother. She underscored the need for banks to evaluate how much store is set by the ratings of the Credit Rating Agencies and urged financial institutions to ensure their internal assessments of credit risk also play a role. “Without taking names, a AAA rated organisation is collapsing within a week of the rating,” adding that some introspection was needed on the method of such credit rating. “We have had discussions with credit rating agencies... how do you rate a company? how do you rate assets? Is it going to be conducive for the way we do business in india without compromising on quality? Work is happening on that as well,” Sitharaman said.The Finance Minister’s comments arrive in the backdrop of credit rating agencies reportedly facing the heat from markets regulator SEBI after the IL&FS implosion.The finance minister also spoke about empowering the RBI more though central legislations to enable the central bank on regulatory control for cooperative banks, talking in the context of the current crisis of the Punjab and Maharashtra Bank.The Finance Minister spoke about the continued efforts of the Centre in bringing out a slew of reforms —corporate tax cut being a key reform—and efforts to bring meaningful regulatory change in a churning economy.