CREDIT RATING AGENCIES IN INDIA

Around 1990, Credit Rating Agencies started to be set up in India.

Among them the most important ones are:

1) Credit Rating Information Services of India Ltd. (CRISIL) – Launched in the pre- reforms era, CRISIL has grown in size and strength over the years to become one of the top five globally rated agencies. It has a tie up with Standard and Poor’s (S & P) of USA holding 10% stake in CRISIL. It has also set up CRIS – RISC a subsidiary for providing information and related services over the internet and runs an online news and information service. CRISIL’s record of ratings covers 1800 companies and over 3600 specific instruments.

2) Investment Information and Credit Rating Agency (ICRA) – It began its operations in 1991. Its major shareholders are leading financial institutions and banks. Moody’s Investor Services through their Indian subsidiary, Moody’s Investment Company India (P) Ltd. is the single largest shareholder. ICRA covers over 2500 instruments.

3) Credit Analysis and Research Ltd. (CARE) – It was established in 1993. UTI, IDBI andCanara Bank are the major promoters. CARE has over 2500 instruments under its belt and occupies a pivotal position as a rating entity. 

1) Fitch Ratings India (P) Ltd. – The Fitch Group, an internationally recognized statistical rating agency has established its base in India through Fitch Rating India (P) Ltd. as a 100% subsidiary of the parent organization. Its credit rating apply to a variety of corporates / issues and is not limited to governments, structured financial arrangements and debt instruments. All the four agencies as discussed are recognized by SEBI.