Most Popular Credit Rating Agencies in India – Headquarters & Roles

credit-rating-agencies-india

 

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.

 

 

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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
Logo Year of Establishment Headquarters
1. Credit Information Bureau India Limited (CIBIL) CIBIL 2000  Mumbai, India
2. Credit Rating Information Services of India Limited (CRISIL) crisil 1987  Gurgaon, India
3. Investment Information and Credit Rating Agency of India (ICRA) ICRA  1991  Mumbai, India
4. Credit Analysis & Research Limited (CARE) Care rating 1993  Mumbai, India
5. Onida Individual Credit Rating Agency of India (ONICRA) ONICRA 1993  Mumbai, India
6. Small and Medium Enterprises Rating Agency of India Limited (SMERA)  smera 2005   Mumbai, India
7. Brickwork Ratings India Private Limited Brickwork rating india 2007  Bangalore, India
8. Equifax Credit Information Services Private Limited (ECIS) Equifax 2010  Mumbai, India
9. Experian India experian-logo 2006  Mumbai, India

 

CIBIL

 

 

Full Form: Credit Information Bureau India Limited.

 

Year of Establishment: 2000.

 

Headquarters: Mumbai, India.

 

 

Role of CIBIL in Rating Debtors: Important Details

 

CIBIL is a Credit Rating Agency operating in India, founded in August 2000.

 

TransUnion CIBIL is one of the four credit bureaus operating in India.

 

It maintains credit files of over 550 million individuals and 32 million businesses.

 

Their main objective is to create information solutions that enable businesses to grow and give consumers faster, cheaper access to credit and other services.

 

 

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.

 

 

ONICRA

 

Full Form: Onida Individual Credit Rating Agency of India

 

Year of Establishment: 1993

 

Headquarters: Gurgaon, India

 

 

ONICRA As an Indian Credit Rating Agency: Important Details

 

ONICRA is a private sector agency which was set up by Onida Finance.

 

It performs a wide range of areas such as Accounting, Finance, Back-end Management, Analytics, and Customer Relations.

 

ONICRA have Pan India Presence with offices over 125 locations.

 

It investigates data and arranges for possible rating solutions for Small and Medium Enterprises and Individuals.

 

Role of ONICRA: Risk assessment reports and analytical solutions for individuals, MSME’s as well as for well-established corporate organizations are offered by ONICRA.

 

 

 

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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.

 

 

ECIS

 

Full Form: Equifax India (Equifax Credit Information Services Private Limited).

 

Year of Establishment: 2010

 

Headquarters: Mumbai, India.

 

 

ECIS as an Indian Credit Rating Agency: Important Details

 

Equifax India is a subsidiary of Equifax US which was established in 2010.

 

It formed a joint venture between the parent company and seven prime financial institutions in India (UBI, SBI, Bank of Baroda, Bank of India, Kotak Mahindra, Sundaram Finance and Religare).

 

Equifax India has an energetic team of experts and leaders who come from the Banking and Financial services of the world.

 

Role of ECIS: Reports provided by Equifax India includes Basic or Enhanced consumer information report, Equifax alerts, and Microfinance institution credit information.

 

 

Experian India

 

Full Form: Experian India.

 

Year of Establishment: 2006

 

Headquarters: Mumbai, India

 

 

Experian India As an Indian Credit Rating Agency: Important Details

 

In February 2010, Experian India became the first Credit Information Company to be awarded a license to the new Credit Information Companies (Regulation) Act (CICRA) 2005.

 

Experian India also became the first CICRA licensed credit bureau on 12th August 2010, to go live with its operations.

 

Role of Experian India: Experian India is a Credit Rating Agency in India which consists of two types of companies: Experian Credit Information Company of India Private Limited (provides credit information) and Experian Services India Private Limited (provides relevant data for organizations to minimize risk and maximize revenue).

 

 

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Here, you are provided with the complete details regarding Credit Rating Agencies in India. If you find this information useful, then do share this with your friends.

 

If you still have doubts/queries related to this blog, you can ask in the comment section given below.

 

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