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What are the names of Indian Credit Rating Agencies and their grades?

Credit rating agencies evaluate debentures, fixed deposits and other short term credit documents of various companies after studying their financial status, industrial risks and market conditions. There are 4 credit rating agencies working in India namely, CRISIL, ICRA, CARE and DCR India.
Mar 15, 2018 02:35 IST
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Credit rating Agencies India
Credit rating Agencies India

Credit rating agencies evaluate debentures, fixed deposits and other short term credit documents of various companies after studying their financial status, industrial risks and market conditions. These companies work on the requests of the companies. CRISIL is the first credit rating agency in India which started its operation in January 1988.

At present there are 4 credit rating agencies are working in India;

1. Credit Rating Information Service of India Limited (CRISIL)

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

3. Credit and Research Limited (CARE)

4. Duff falps credit rating India private limited (DCR India)

All the above mentioned credit rating agencies quote the credit rating only for a particular period of time. It may change according to the circumstances. This credit rating is meant only for debentures fixed deposits and other short term credit documents of various companies but not for equity shares.

The different types of credit rating allotted by different credit rating agencies in India are shown in the table given below;

credit rating agencies india

In addition to the above Indian credit rating agencies look at the investment grades of the moody’s;

Moody's Investors Service, often referred to as Moody's, provides international financial research on bonds issued by commercial and government entities.

What type of rating is provided by the Moody’s to the organization and the countries’ is given below;

Rating

What Rating Shows

Aaa

 Bonds and other financial products of this rating considered as the lowest credit risk and highest quality. In financial terms it means; that the bonds possess least investment risk.

Aa1

  Bonds and other financial products of this rating are believed as high quality and very low credit risk. In business term this rating shows high grade bonds.

Aa2

Aa3

A1

 Bonds and other financial products of this rating are assumed as upper-medium grade and low credit risk. It shows high mid grade bonds with favourbale investment factors.

A2

A3

Baa1

 Rated as medium grade, with some speculative elements and moderate credit risk. It shows mid grade bonds neither low grade nor high grade safety.

Ba

 Those financial products have this rating; It shows they are covered with speculative factors.


Moody's rating for India:-
Moody's has upgraded the Government of India's local and foreign currency issuer ratings to Baa2 from Baa3 and changed the outlook from positive to stable.
India’s rating has been upgraded after a gap of 13 years. India’s sovereign credit rating was last time upgraded in January 2004.
In the concluding remark it can be said that the rating given by the credit rating agencies improves the confidence of the investors in the bonds and other financial products issued by the companies of a country and the government.
So these credit rating agencies plays a big role in making the image of the country and organization at the international level.

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