Credit rating emerged in India with the birth of Credit Rating Information Services of India Ltd. (CRISIL) in 1987, which commenced its operations in January 1988. Corporate sector enterprises have depended in India for expansion of existing projects upon the financial institutions and banks. The need for credit rating agency has been felt much more now when the capital market is growing. A move in the corporate sector from debt-age to free market-finance-age has further increased the chances for more Credit Rating Agencies. This is the time for investors to measure risk as well as for the corporate units to use credit rating as a marketing tool. The growth of the capital market is discernible from the fact that there are 22 stock exchanges besides the OTC exchange of India and NSE, operating in India with over 10000 listed companies and more than 1.5 crores individual investors with increasing trend of investible funds and increasing demand for funds from the industry. Investors have to rely upon rated instruments rather than following the advices of the financial intermediaries.
Credit rating agencies in India
The following are the credit rating agencies in India: -
1. The Credit Rating Information Services of India Limited (CRISIL)
2. Investment Information &Credit Rating Agency of India Limited (ICRA)
3. Credit Analysis & Research Limited (CARE)
4. Fitch India Private Limited.
5. Brickwork Ratings India Private Limited
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