Credit Rating Agencies in India

Credit Rating Information Services of India (CRISIL Ltd.).

CRISIL is the first rating agency in India. It was set-up in 1987 jointly by the erstwhile ICICI Ltd. and UTI. The other shareholders are Asian Development Bank (ADB), LIC, State Bank of India, HDFC etc. The head office of the company is located at Mumbai and it has established offices outside India also. The CRISIL Ltd. is the world’s fourth largest rating agency. ‘CRISIL’ has rated over 4700 debt instruments issued by 2200 companies.

The activities of CRISIL Ltd. are as under

To provide credit rating service in respect of Ratings of corporate debt issuances, Ratings of banks, non-banking finance companies, Ratings of borrowing programmes of governments and government bodies, Ratings of structured finance instruments and Ratings of micro-finance institutions

To provide analytical tools for management of risk such as market risk, credit and operational risk and valuation services

To undertake research on economy, industry and company performance and publish such reports

To provide corporate as well as market advisory services to corporate and non-corporate clients.

Investment Information and Credit Rating Agency of India Ltd. (ICRA)

ICRA was established in the year 1991 by the collaboration of financial institutions, investment companies, and banks. The company has formed the ICRA group together with its subsidiaries. The company offers products like short-term debt schemes, Issue-specific long-term rating and offers fund based as well as non-fund based facilities to its clients.

The objectives of the ICRA Ltd. are as follows:

To rate rupee denominated debt instruments issued inter alia, by manufacturing companies, commercial banks, non-banking finance companies, financial institutions, public sector undertakings and local bodies, etc.

To take-up assignments for credit assessment of companies/ undertakings intending to use the same for obtaining specific line of assistance from commercial banks, financial institutions, non-bank financial services companies.

It provides services of general assessment. At the request of banks or any other potential users, it prepares, as per their requirements, general assessment reports. It does not assign any specific symbols in respect of such general assessments. It provides a report on various aspects of the functioning of companies such as operations, quality of management etc.

To undertake research based study reports to address the unique needs and requirements of an individual client. The assignments include due diligence studies, equity assessment/valuation, industry analysis, and market study etc.

To offer advisory services to banks, finance companies, manufacturing companies, government, regulatory authorities and local bodies in the following areas of strategic consulting, risk management and inputs for policy formulation

Credit Analysis and Research Limited (CARE)

CARE was incorporated in 1993. It was promoted by Industrial Development Bank of India (IDBI), Canara Bank, Unit Trust of India (UTI) and other financial and lending institutions. CARE has completed over 7,564 rating assignments since its inception in 1993.

The functions of CAREL are as under

To undertake credit rating of all types of debt instruments, both short term and long term.

To make available information on any company, industry or sector required by a business enterprise.

To undertake equity research study of listed or to be listed companies on the major stock exchanges

FITCH Ratings

Fitch Ratings is a global rating agency committed to provide the world’s credit markets with independent and prospective credit opinions, research, and data. The headquarters of Fitch Ratings is in New York and London and it is a part of the Fitch Group.

BRICKWORK Ratings

Brickwork Ratings is a private credit rating agency. It was registered under SEBI in the year 2008. It was founded by bankers, credit rating professionals, former regulators as well as professors, was committed to promoting Financial Literacy.