Credit Rating Agencies In India - Function Of CRA In 2016 - SBI Clerks - IBPS PO Exams

Posted by | Last Updated at 1:32 AM | Tagged in , |

Advertisement


Credit rating agencies in india and Its Functions : A credit rating agency (CRA, also called a ratings service) is a company that assigns credit ratings, which rate a debtor's ability to pay back debt by making timely interest payments and the likelihood of default. An agency may rate the creditworthiness of issuers of debt obligations, of debt instruments,and in some cases, of the servicers of the underlying debt,but not of individual consumers.


credit rating agencies in india

The debt instruments rated by CRAs include government bonds, corporate bonds, CDs, municipal bonds, preferred stock, and collateralized securities, such as mortgage-backed securities and collateralized debt obligations.


Indian credit rating industry mainly comprises of CRISIL, ICRA, CARE, ONICRA, FITCH & SMERA. CRISIL is the largest credit rating agency in India, with a market share of greater than 60%. It is a full service rating agency offering its services in manufacturing, service, financial and SME sectors. SMERA is the rating agency exclusively established for rating of SMEs.

Functions of credit rating agencies in india :

The credit rating agencies in India offer varied services like mutual consulting services, which comprises of operation up gradation, risk management.

The have special sections to carry on research and development work of the industries. They provide training to the employees and executives of the companies for better management. They examine the risk involved in a new project, chalk out plans to fight with the problem successfully and thus ameliorate the percentage of risk to a great extent. For this they carry on thorough research into the respective industry. They have started offering services to the mutual fund sector through the application of fund utilization services. The major industries currently graded by the credit rating agencies include agriculture, health care industry, infrastructure, and maritime industry. -

Small and Medium Enterprises Rating Agency (SMERA)

SMERA a joint initiative by SIDBI, Dun & Bradstreet Information Services India Private Limited (D&B) and several leading banks in the country. SMERA is the country's first Rating agency that focuses primarily on the Indian MSME segment. SMERA has completed 7000 ratings

CRISIL

CRISIL is the largest credit rating agency in India. It was established in 1987. The world’s largest rating agency Standard & Poor's now holds majority stake in CRISIL. Till date it has rated more than 5178 SMEs across India and has issued more than 10,000 SME ratings.

CARE Ratings

Incorporated in 1993, Credit Analysis and Research Limited (CARE) is a credit rating, research and advisory committee promoted by Industrial Development Bank of India (IDBI), Canara Bank, Unit Trust of India (UTI) and other financial and lending institutions. CARE has completed over 7,564 rating assignments since its inception in 1993.

ONICRA Credit Rating Agency

ONICRA was established in 1993 by Mr. Sonu Mirchandani as a rating agency. It analyzes data and provides rating solutions for Individuals and Small and Medium Enterprises(SMEs). ONICRA has an extensive experience in operating a wide range of business processes in areas such as Finance, Accounting, Back-end Management, Application Processing, Analytics, and Customer Relations. It has rated more than 2500 SMEs.

Fitch Ratings

Fitch Ratings is a global rating agency committed to providing the world's credit markets with independent and prospective credit opinions, research, and data. Fitch Ratings is headquartered in New York and London and is part of the Fitch Group.

ICRA

ICRA was established in 1991 by leading Indian financial institutions and commercial banks. International credit rating agency, Moodys, is the largest shareholder. ICRA has a dedicated team of professionals for the MSME sector and has developed a linear scale for MSME sector which makes the benchmarking with peers easier.

Credit rating is a highly concentrated industry, with the two largest CRAs—Moody's Investors Service and Standard & Poor's (S&P)—controlling 80% of the global market share, and the "Big Three" credit rating agencies—Moody's, S&P, and Fitch Ratings—controlling approximately 95% of the ratings business


References :


1. https://en.wikipedia.org/wiki/Credit_rating_agency

2. http://business.mapsofindia.com/finance-commission/institutions/credit-rating-agencies.html
3. http://smallb.sidbi.in/%20/fund-your-business%20/credit-rating%20/msme-rating%20/rating-agencies-india

Save as Pdf : Print Friendly and PDF

Subscribe Now - Get Daily Updates - GK Quiz - Exam Notifications !


Tags : List Of credit rating agencies in india and Functions Of CRA . Here are credit ratings agencies in india CRISIL, ICRA, CARE, ONICRA, FITCH & SMERA

Post Comment Below