Know More About Credit Rating Agencies in India
A credit rating is a numerical measure of an individual’s or business's creditworthiness, playing a critical role in the loan approval process. It indicates whether the borrower has defaulted on previous payments and whether they can be trusted with a new loan.
In India, leading credit rating agencies include CRISIL, India Ratings and Research, ICRA, CARE, Brickwork Ratings, SMERA Ratings, and Infometrics Valuation.
Know more about credit rating and credit rating agencies here.
What does credit rating mean?
The credit score is determined based on the following factors.
- Payment History: 35%
- Credit Utilisation: 30%
- Credit History Duration: 15%
- Credit Mix: 10%
- New Credit: 10%
What is a credit rating agency?
A credit rating agency (CRA) evaluates an individual’s or a company’s creditworthiness by analyzing income and credit lines to determine their ability to repay debt and assess any associated credit risks.
The Securities and Exchange Board of India (SEBI) has the authority to authorize and regulate credit rating agencies under the SEBI Regulations, 1999, as per the SEBI Act, 1992.
How do credit rating agencies work?
Credit rating agencies assess organizations, individuals, or entities and assign ratings based on various factors. These agencies have the authority to rate companies, state governments, non-profits, countries, securities, local government bodies, and special purpose entities.
When determining a rating, factors such as financial statements, debt type, lending and borrowing history, repayment capability, and past credit repayment behavior are considered. Each factor contributes to the overall credit score.
While credit rating agencies do not make decisions for financial institutions on whether to grant a credit facility, they provide comprehensive reports and insights to help lenders make informed decisions.
List of registered credit rating agencies
According to SEBI, the following credit rating agencies are registered and authorised to compute and share credit score/report with the financial institutions and applicants.
- CRISIL Limited: Credit Rating Information Services of India Limited (CRISIL), one of the oldest credit rating agencies, was set up in 1987. The agency stepped on to infrastructure rating in 2016. CRISIL has been operational in countries such as the USA, UK, Poland, Hong Kong, China, and Argentina in addition to India. The registered address and contact details of CRISIL are:
CRISIL Limited
CRISIL House Central Avenue
Hiranandani Business Park
Powai Mumbai 400 076
Tel: +91 (22) 33423000
Fax: +91 (22) 33423810
Email: info@crisil.com - India Ratings and Research Pvt Ltd: India Ratings and Research, a wholly-owned subsidiary of Fitch Group, provides accurate and timely credit opinions on the country’s credit market. The firm covers corporate issuers, financial institutions, managed funds, urban local bodies, project finance companies, and structured finance companies. The headquarters is in Mumbai and the other branch offices are in Ahmedabad, Delhi, Chennai, Bengaluru, Hyderabad, Pune, and Kolkata. The registered address and contact details with SEBI are:
Wockhardt Towers, 4th Floor, West Wing
Bandra Kurla Complex, Bandra
East Mumbai 400 051
Tel: +91 (022) 40001700
Fax: +91 (022) 40001701
Email: investor.services@indiaratings.co.in
Website: www.indiaratings.co.in - ICRA Limited: The Investment Information and Credit Rating Agency (ICRA), a joint venture of Moody’s and Indian Financial and Banking Service Organisation was established in 1991. The organisation is known for assigning corporate governance rating, performance rating, mutual funds ranking, and more.The registered address and contact details of ICRA are given below:
1105, Kailash Building, 11th Floor
26, Kasturba Gandhi Marg New Delhi 110 001
Tel: + 91 (11) 23357940 – 50
Fax: + 91 (11) 23357014
Website: www.icra.in
Email:info@icraindia.com - CARE: Credit Analysis and Research Limited (CARE) is a credit rating agency that is operational since April 1993. The agency provides a credit rating that helps corporates to raise funds for their investment requirements. Investors can make decisions based on credit risk and risk-return expectations. In addition to the head office in Mumbai, the firm has regional offices in New Delhi, Pune, Kolkata, Chandigarh, Jaipur, Ahmedabad, Bengaluru, Chennai, Coimbatore, and Hyderabad. The address of CARE’s registered office is given below:
4th Floor, Godrej Coliseum
Somaiya Hospital Road
Behind Everard Nagar
Off Eastern Express Highway,
Sion (E) Mumbai 400 022
Tel: + 91 (22) 566 02871/72/73
Fax: + 91 (22) 566 02876
Email: care@careratings.com - Brickwork Ratings India Pvt Ltd: In addition to registering with SEBI, Brickwork Ratings (BWR) is accredited by RBI and empanelled by NSIC, NCD, MSME ratings and grading services. It has received accreditation from NABARD for MFI and NGO grading. Brickwork is also authorised to grade companies seeking credit facilities from IREDA, Renewable Energy Service Providing Companies (RESCOs) and System Integrators (SIs). Canara Bank was the leading promoter and strategic planner for Brickwork. The registered office address of Brickwork is:
3rd Floor, Raj Alkaa Park
29/3 & 32/2, Kalena Agrahara
Bannerghatta Road, Bangalore – 560 076
Tel: +91 (80) 4040 9940
Fax: +91 (80) 4040 9941
Website: www.brickworkratings.com
Email: info@brickworkratings.com - SMERA Ratings Limited: SMERA analyses and establishes the credibility of existing micro, small, and medium enterprises (MSMEs). MSMEs can improve, grow, and avail cheaper/faster loans. The registered address SMERA Ratings is:
Unit No.102, 1st Floor,
Sumer Plaza Marol Maroshi Road,
Marol Andheri (East), Mumbai 400 059
Tel: +91 (22) 67141144/45
Fax: +91 (22) 67141142
Website: www.smera.in - Infometrics Valuation and Rating Pvt Ltd: This SEBI-registered, RBI-accredited credit rating agency was founded by finance professionals, former bankers, and administrative services personnel. It evaluates entities such as banks, non-banking financial companies, large corporates, and small and medium scale units (SMUs). The rating agency is registered with SEBI under the following address:
Flat No. 104/108, 1st Floor Golf Apartments
Sujan Singh Park, New Delhi 110003
Tel:+ 91 (11) 24601142, 24611910, 24649428
Fax: +91 (11) 24627549
E-mail: vma@infomerics.com
Website: www.infomerics.com
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