Credit Rating Agencies


 
 
Concept Explanation
 

Credit Rating Agencies

Credit Rating Agencies: The Credit rating market took a definite shape in India after SEBI made it mandatory for any debenture that has maturity of more than 18 months maturity, to obtain and publish credit rating

  • CRISIL:  CRISIL is India's first credit rating agency, incorporated in 1987, and was promoted by the erstwhile ICICI Ltd. along with UTI and other financial institutions. It commenced operations from 1988 onwards. In 1995, in partnership will National Stock Exchange, CRISIL developed CRISIL500 Equity Index. In 1996, it made a strategic alliance with the Standard and Poor's (S&P) Ratings Group and in the following year Standard and Poor's (S&P) Ratings Group acquired 9.68% shares in it.
  • ICRA:  India's second credit rating agency is ICRA (Investment Information and Credit Rating Agency), which was set up in 1991. It was promoted by Industrial Finance Corporation of India (IFCI) and other leading financial/investment institutions, commercial banks and financial services companies, as an independent and professional Investment Information and Credit Rating Agency.
  • CARE: The third credit rating agency in India is CARE that started working in 1993. It was mainly promoted by IDBI.
  • ONICRA:  Later, another credit rating agency ONICRA was established which, now Onicra Credit RatingAgency of India Ltd., is a private sector agency set up by Onida Finance. Today, it has a niche market and provides assessment, grading and rating models for individuals and MSMES (micro, small and medium enterprises).
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