A Credit Rating Agency is a company that 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.
Below are the top and most popular Credit Rating Agencies in India which are important for UPSC IAS Prelims, SSC CGL, Bank PO exams etc.
| S.No. |
Name of Credit Rating Agency |
Year of Establishment |
Headquarters |
| 1. |
Credit Rating Information Services of India Limited (CRISIL) |
1987 |
Gurgaon, India |
| 2. |
Investment Information and Credit Rating Agency of India (ICRA) |
1991 |
Mumbai, India |
| 3. |
1993 |
Mumbai, India |
|
| 4. |
Small and Medium Enterprises Rating Agency of India Limited (SMERA) |
2005 |
Mumbai, India |
| 5. |
2007 |
Bangalore, India |
|
| 6. |
India Ratings and Research Pvt. Ltd. |
1995 |
Mumbai, India |
| 7. |
Infomerics Valuation and Rating Pvt. Ltd. |
1986 |
New Delhi, India |
CRISIL
Full Form: Credit Rating Information Services of India Ltd.
Year of Establishment: 1987
Headquarters: Gurgaon, India
CRISIL, A Trusted Rating for Debtors, Investors, Intermediaries in India: Important Details
CRISIL is India’s first credit rating agency, with a market share of more than 60%.
It was promoted by ICICI Ltd, UTI, and other financial institutions.
In 1988, it commenced its operations.
In 1995, in partnership with National Stock Exchange, CRISIL developed CRISIL500 Equity Index.
CRISIL’s businesses operate from 8 countries: USA, Argentina, Poland, UK, India, China, Hong Kong and Singapore.
In 1996, it allied with the Standard & Poor’s (S&P) Ratings Group and in the next year, Standard & Poor’s (S&P) Ratings Group acquired 9.68% shares in it.
ICRA
Full Form: Investment Information and Credit Rating Agency of India
Year of Establishment: 1991
Headquarters: Mumbai, India
ICRA as an Indian Credit Rating Agency: Important Details
ICRA originally named as Investment Information and Credit Rating Agency of India Limited (IICRA India) is an independent and professional investment information and credit rating agency in India.
It is India’s second credit rating agency.
It was promoted by Industrial Finance Corporation of India (IFCI), and other leading financial/investment institutions.
Role of ICRA: Corporate debt rating, Financial sector rating, Issuer rating, Bank loan credit rating, Public finance rating, Corporate governance rating, Structured finance rating, SME rating, Mutual fund rating, Infrastructure sector rating, Project finance rating and Insurance sector rating are the types of ratings offered by ICRA.
CARE
Full Form: Credit Analysis & Research Limited.
Year of Establishment: 1993.
Headquarters: Mumbai, India.
CARE as an Indian Credit Rating Agency: Important Details
CARE is India’s third Credit Rating Agency.
It commenced its operations in April 1993.
It was mainly promoted by IDBI along with Canara Bank, UTI and other financial and lending institutions.
Role of CARE: It offers credit ratings in the following areas: Debt ratings, Bank loan ratings, Issuer ratings, Corporate governance, Recovery ratings, Financial sector, and Infrastructure ratings.
It is the second-largest Credit Rating Agency in India.
SMERA
Full Form: Small and Medium Enterprises Rating Agency of India Limited.
Year of Establishment: 2005.
Headquarters: Mumbai, India.
SMERA As an Indian Credit Rating Agency: Important Details
SMERA is a credit rating agency in India which was set up for micro, small and medium enterprises (MSME).
It was established in 2005 by SIDBI, Dun & Bradstreet Information Services India Private Limited (D&B) and some chief banks in India.
In 1999, SMERA has been registered under Securities and Exchange Board of India and is only the sixth rating agency in India to rate issues such as IPO, bonds, commercial papers, security receipts and others.
Role of SMERA: As an external credit assessment institution (ECAI), Reserve Bank of India (RBI) accredited SMERA to rate bank loan ratings under Basel II guidelines.
BWR
Full Form: Brickwork Ratings India Private Limited.
Year of Establishment: 2007
Headquarters: Bangalore, India.
BWR as an Indian Credit Rating Agency: Important Details
Brickwork Ratings is a credit rating agency in India which was established in 2007.
It also plays a significant role in the grading of real estate investments, hospitals, educational institutions, tourism, NGOs, IREDA, MFI, and MNRE.
It is also accredited by Reserve Bank of India (RBI) and empaneled by NSIC.
It offers Bank Loan, NCD, Commercial Paper, MSME ratings and grading services.
Role of BWR: BWR is responsible for rating bank loans, municipal corporation, capital market instrument, financial institutions, SME’s and corporate governance ratings.
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