Credit Rating Agencies in India

Credit rating agencies are companies which are assigns ratings to the debtors according to their ability to pay back the debt in a timely manner. These agencies provide highly essential risk assessment reports and analytical solutions and assign a definitive credit score to both individuals as well as organizations. These reports are considered important for getting the loan.

Credit Rating Agencies in India has developed over a period of time. The most popular Credit Rating Agencies in India are CRISIL, ICRA, CARE, ONICRA, and SMERA.

Any individual, corporation, state or provincial authority, or sovereign government that seeks to borrow money are assigned with a Credit Rating.

Credit Rating Agencies in India

1. CRISIL: (Credit Rating and Information Services of India Limited)

  • It is India’s first credit rating agency which was incorporated and promoted by the erstwhile ICICI Ltd, along with UTI and other financial institutions in 1987.
  • After 1 year, i.e. in 1988 it commenced its operations.
  • It has its head office in Mumbai.
  • It is India’s foremost provider of ratings, data and research, analytics and solutions, with a strong track record of growth and innovation.
  • It delivers independent opinions and efficient solutions.
  • CRISIL’s businesses operate from 8 countries including USA, Argentina, Poland, UK, India, China, Hong Kong and Singapore.
  • CRISIL’s majority shareholder is Standard & Poor’s.
  • It also works with governments and policy-makers in India and other emerging markets in the infrastructure domain.

2. ICRA (Investment Information and Credit rating agency)

  • The second credit rating agency incorporated in India was ICRA in 1991.
  • It was set up by leading financial/investment institutions, commercial banks and financial services companies as an independent and professional investment Information and Credit Rating Agency.
  • It is a public limited company.
  • It has its head office in New Delhi.
  • ICRA’s majority shareholder is Moody’s.

3. ONICRA Credit Rating Agency

  • It is a private sector agency set up by Onida Finance.
  • It has its head office in Gurgaon.
  • It provides ratings, risk assessment and analytical solutions to Individuals, MSMEs and Corporates.
  • It is one of only 7 agencies licensed by NSIC (National Small Industries Corporation) to rate SMEs.
  • They have Pan India Presence with offices over 125 locations.

Apart from these credit rating agencies, there are three more credit rating agencies which are also registered with SEBI. These are Fitch Ratings India Private Ltd., Brickwork Ratings India Private Limited, SME Rating Agency of India Ltd. (SMERA).

4. CARE Ratings

Incorporated in 1993, Credit Analysis and Research Limited (CARE) is a credit rating, research and advisory committee 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.

5. SMERA (Small and Medium Enterprises Rating Agency)

SMERA a joint initiative by SIDBI, Dun & Bradstreet Information Services India Private Limited (D&B) and several leading banks in the country. SMERA is the country’s first Rating agency that focuses primarily on the Indian MSME segment. SMERA has completed 7000 ratings.