Top 7 Credit Rating Agencies in India

Credit Rating Agencies (CRAs) assess, calculate and assign the credit ratings to the companies, organizations and enterprises. It performs a detailed analysis of the financial instruments of various entities. CRAs help lenders and investors determine the potential risk involved in lending money to a particular borrowing entity. It depicts the risk involved with investing in debt instruments.

The rating scales used by the Credit Rating Agencies are scaled from ‘AAA’ to ‘D’, wherein ‘AAA’ stands for the highest rating and ‘D’ is the lowest or Bad Credit Rating. Similarly, the credit score range is defined by the credit bureaus, wherein any score above 750 and as close to 900 is considered good by the potential lenders.

Top 7 Credit Rating Agencies in India

Below mentioned are details and roles of the leading 7 Credit Rating Agencies (CRAs) in India with their key functionalities:

• Credit Rating Information Services of India Ltd. (CRISIL)
• Investment Information and Credit Rating Agency of India (ICRA) Ltd.
• Credit Analysis and Research (CARE) Ltd.
• Acuite Ratings & Research Ltd.
• Brickwork Ratings India Private Ltd.
• India Ratings and Research Pvt. Ltd.
• INFOMERICS Valuation and Rating Private Ltd.

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

Incorporated in 1987, CRISIL Ratings Limited (A subsidiary of CRISIL Limited, an S&P Global company) is a full-service credit rating agency that serves investors, lenders, issuers, and market intermediaries and regulators by covering banks, NBFCs, PSUs, manufacturing companies, financial institutions, state governments, urban local bodies, etc. Credit Rating Information Services of India Limited (CRISIL) evaluates the creditworthiness of commercial entities based on their strengths, market reputation and market share.

The credit rating agency helps investors make informed investment decisions by providing credit ratings for companies, organisations and banks. CRISIL generates and provides various rating services, such as Independent Credit Evaluation, Corporate and Financial Sector ratings, Fund Ratings, Recovery Risk Ratings, Expected Loss (EL) Ratings, etc. It also offers services related to Structured Finance and Insurance Hybrids.

The rating generated by the agency ranges from AAA to D, wherein AAA is the highest or creditworthy and D is the lowest or even defaulted.

CRISIL’s Registered Address and Contact Details:

CRISIL Limited, CRISIL House, Central Avenue,
Hiranandani Business Park, Powai
Mumbai – 400076
Tel: + 91 (22) 33423000
Fax: + 91 (22) 33423810
Email: info@crisil.com

Customer Care: +1800 267 1301, crisilratingdesk@crisil.com

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

ICRA Limited (formerly Investment Information and Credit Rating Agency of India Limited) is an independent and professional investment Information and Credit Rating Agency. Formed in 1991, ICRA offers guidance and information to institutional and individual investors and creditors. It rates rupee-dominated debt instruments issued by commercial banks, NBFCs, PSUs, manufacturing companies and municipalities.

The agency uses a transparent rating system to assign comprehensive credit ratings to corporates. It specialises in assigning corporate governance ratings, mutual funds ratings, structured finance ratings, performance ratings, etc.

ICRA’s Registered Office and Contact Details:

B-710, statesman House, 148, Barakhamba Road, New Delhi, 110001, Telephone No: +91-11-23357940

Your ability to avail new credit depends on your credit score. Avail Free Credit Score Check Now!

3. Credit Analysis and Research (CARE) Ltd.

Established in 1993, Credit Analysis and Research Limited (CARE) is an experienced credit rating agency that covers various market sectors, including infrastructure, manufacturing, and financial sectors, including banks and non-financial services.

The agency provides ratings to companies related to developing bank debt and capital market instruments that include CPs, corporate bonds and debentures, and structured credit. Its credit ratings can be used by investors to make informed decisions based on credit risk and risk-return expectations. CareEdge Ratings’ (CARE Ratings Ltd.) manages and operates its wholly owned subsidiaries, such as CARE Advisory, Research & Training Ltd. and CARE Risk Solutions Pvt Ltd.

Registered address:

4th Floor, Godrej Coliseum
Somaiya Hospital Road, Behind Everard Nagar
Off Eastern Express Highway, Sion (E), Mumbai 400 022

Email: care@careratings.com

4. Acuite Ratings & Research Ltd.

Acuité Ratings & Research Limited (Formerly known as SMERA Ratings Limited) is a SEBI-registered and RBI-accredited credit rating agency that offers ratings to companies serving structured finance, corporate and financial sectors. Its earlier range of products and services portfolio included Bank Loan Ratings, SME Ratings, Bond Ratings, CP Ratings, etc.

Currently, the agency’s primary services include Bond & Bank Loan Ratings, Economic Analysis and Financial Research Services. Largely, Acuité offers services to largely small-sized private corporates, and public sector organizations like Nuclear Power Corporation, and renowned companies in the financial sector.

The agency offers credit rating services to companies serving various sectors, such as banking, telecom, IT & ITes, steel, aviation, oil and gas, retail, etc.

Registered & Corporate Office:

708, Lodha Supremus
Lodha iThink Techno Campus
Kanjurmarg (East)
Mumbai 400 042
Email: info@acuite.in

5. Brickwork Ratings India Private Ltd.

Brickwork Ratings (BWR) is a SEBI-registered and RBI accredited Credit Rating Agency that offers rating services on Bank Loans, Fixed Deposits, Non-convertible debentures (NCD), Commercial Paper, Securitised paper, Security receipts, etc.

The agency offers credit ratings for banks, financial institutions, large corporate customers, and state and local governments. BWR offers a wide range of rating services and products related to Capital Market Instruments and Bank Loans for the Corporate, Financial, Infrastructure and Insurance Sectors, PSUs, State Government, Municipal and Urban Local Bodies, etc.

Corporate Office and Contact Details:

3rd Floor, Raj Alkaa Park, 29/3 & 32/2 Kalena Agrahara, Bannerghatta Road, Bengaluru – 560 076
Phone : +91 80 4040 9940 / 4040 9999 | Mobile: +91 96118 05999

6. India Ratings and Research Pvt. Ltd.

India Ratings and Research (Ind-Ra), a wholly owned subsidiary of the Fitch Group is one of the leading credit rating agencies recognized by SEBI and accredited by RBI. Ind-Ra offers credit rating services to banks, insurance companies, corporate issuers, finance and leasing companies, urban local bodies and managed funds, structured finance and project finance companies.

With its Head office in Mumbai, the agency operates from its seven branch offices across India, including Delhi, Chennai, Kolkata, Ahmedabad, Bengaluru, Hyderabad and Pune.

Corporate Headquarters:

Wockhardt Towers, 4th Floor, West Wing
Bandra Kurla Complex, Bandra East
Mumbai 400 051
Tel: + 91 (022) 40001700
Fax: + 91 (022) 40001701
Email: infogrp@indiaratings.co.in

7. INFOMERICS Valuation and Rating Private Ltd.

Integrated Financial Omnibus Metrics Research of International Corporate Systems

INFOMERICS Valuation and Rating Private Limited is a SEBI-registered and RBI accredited Credit Rating Agency that provides deep analysis and evaluation of creditworthiness and ratings of Banks, NBFCs, Large Corporates and Small and Medium Scale Units (SMUs).

INFOMERICS offer credit rating services money market & capital market instruments and borrowing programmes, such as Non-Convertible Debentures, Commercial Papers, Tier I & Tier II Bonds, Perpetual Bonds, Structured Obligations (including guarantee-backed debt programmes), and Securitisation Transactions.

The agency also rates Mutual Funds and Alternative Investment Fund schemes. Its grading services include Corporate Governance rating, and Grading of Construction entities, Engineering & Management institutions, Initial Public Offerings (IPOs), etc.

Registered Office Address:

Flat No. 104/106/108 and 303, First Floor & 3rd Floor Golf Apartments, Sujan Singh Park, Maharishi Ramanna Marg, New Delhi – 110003, India

Phone: +91-11-41743541/ 41410244 / 24611910/ 24654796

Email: vma@infomerics.com, hrd@infomerics.com, info@infomerics.com

How Do Credit Rating Agencies Work?

Several factors are taken into consideration by the CRAs or credit raters before assigning a rating to a particular entity, such as their financial statements, type and level of debt, lending and borrowing history, debt repayment ability, past credit repayment behaviour, etc.

Along with the credit rating of an entity, various credit rating agencies in India also provide additional inputs to help lenders/ investors and financial institutions analyse and make informed lending/ investment decisions.

A good credit rating indicates higher creditworthiness and a lower risk of default for the lender and thus, may help an entity avail credit more easily and at considerable rates of interest. Credit ratings that are assigned to entities also serve as a benchmark for financial market regulations.

List of Credit Information Bureaus in India

Stated below are India’s leading 4 Credit Information Companies (CICs) or Credit Bureaus that generated credit reports to individuals and credit rank of companies and enterprises:

• TransUnion CIBIL
• Experian
• Equifax
• CRIF High Mark

FAQs

Q. Who approves or regulates credit rating agencies in India?

Ans. In India, the Securities and Exchange Board of India (SEBI) is the primary authority that approves or regulates Credit Rating companies in India and their various functionalities.

Q. How is credit rating expressed/denoted?

Ans. Credit ratings are usually expressed using letters, such as ‘AAA’ to ‘D’. Where ‘AAA’ stands for the highest and D is considered as the lowest.

Q. How can borrowers benefit from a good credit rating?

Ans. A good credit rating indicates a consumer’s higher creditworthiness and lower risk of default for the lender/ investor and can thus help the borrowing entity access loans at low interest rates along with longer repayment tenure.

Q. What is the difference between credit rating and credit score?

Ans. Credit rating involves evaluating the creditworthiness of entities, usually governments and businesses, by Credit Rating Agencies (CRAs), such as CRISIL, ICRA, CARE, etc. Credit ratings are usually expressed as letter grades. Whereas, credit scores usually help determine the creditworthiness of individuals and are calculated based on the credit history found in the credit report.

Credit scores are computed by four major credit bureaus in India including TransUnion CIBIL, Equifax, Experian and CRIF High Mark. A credit score is a 3-digit number ranging between 300 to 900, where a score closer to 900 is generally considered to be good by lenders.

Q. What is the difference between CRISIL ‘AAA’ and ‘AA’?

Ans. CRISIL ‘AAA’ is defined as the highest safety or credit ratings assigned to businesses, enterprises and organizations by the CRAs. While ‘AAA’ is considered as the highest, ‘AA’ is followed after it is called as the second highest credit rating generated.

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