List of Credit Rating Agencies in India – Top Agencies & Their Services

Credit rating agencies evaluate borrowers' ability and willingness to repay debts, thus helping investors make informed decisions. Several credit rating agencies operate under India's Securities and Exchange Board of India (SEBI) regulation. Here are details of services offered by various credit rating agencies in India, the credit rating process, types of credit ratings, and their overall significance.

List of Credit Rating Agencies

CRISIL (Credit Rating Information Services of India Limited)

Established in 1987, CRISIL is India’s first credit rating agency. It provides ratings, research, risk, and policy advisory services. CRISIL’s ratings are used by investors, regulators, issuers, and intermediaries to make informed decisions. The agency has a global footprint and is a subsidiary of S&P Global.

• Services: CRISIL offers ratings for corporate bonds, bank loans, SMEs, structured finance products, and mutual funds. It also provides research and analytics, risk and compliance solutions, and data and insights across various sectors.
• Notable Achievements: CRISIL has rated over 30,000 entities, making it one of the most trusted names in the credit rating industry.
• Contact Information: CRISIL House, Hiranandani Business Park, Powai, Mumbai – 400076. Phone: +91 22 3342 3000

ICRA Limited (Investment Information and Credit Rating Agency of India Limited)

Founded in 1991, ICRA offers ratings, research, and risk management solutions. It provides high-quality credit ratings to various sectors, including corporate, financial, structured, and project finance. ICRA is an associate of Moody’s Investors Service.

• Services: ICRA’s services include credit ratings for corporate entities, financial institutions, debt instruments, and structured finance products. The agency also offers industry research, economic analysis, and mutual fund grading.
• Notable Achievements: ICRA has established itself as a leading player in the credit rating industry with a strong presence in domestic and international markets.
• Contact Information: Building No. 8, 2nd Floor, Tower A, DLF Cyber City, Phase II, Gurugram – 122002. Phone: +91 124 4545 300

CARE (Credit Analysis and Research Limited)

Established in 1993, CARE Ratings is known for its comprehensive credit ratings in the corporate sector. It covers various rating segments, including manufacturing, infrastructure, and financial services.

• Services: CARE Ratings provides credit ratings for various debt instruments, such as debentures, bonds, commercial paper, fixed deposits, and bank facilities. It also offers grading services for SMEs, educational institutions, hospitals, and real estate projects.
• Notable Achievements: CARE has rated over 10,000 entities, contributing significantly to the Indian financial markets by upholding transparency and investor confidence.
• Contact Information: 4th Floor, Godrej Coliseum, Somaiya Hospital Road, Sion East, Mumbai – 400022. Phone: +91 22 6754 3456

India Ratings and Research (Ind-Ra)

A part of the Fitch Group, India Ratings offers accurate and timely credit opinions on financial instruments. It provides ratings and research for various sectors, including corporate finance, financial institutions, structured finance, and public finance.

• Services: India Ratings offers credit ratings for corporate bonds, bank loans, structured finance products, project finance, and infrastructure finance. It also provides macroeconomic research, sector-specific studies, and risk analysis.
• Notable Achievements: As a Fitch Group company, India Ratings benefits from global best practices and methodologies, ensuring robust and reliable ratings.
• Contact Information: Wockhardt Towers, Level 4, West Wing, Bandra Kurla Complex, Mumbai – 400051. Phone: +91 22 4000 1700

Brickwork Ratings

Incorporated in 2007, Brickwork Ratings is known for its independent credit opinions and research. It offers ratings and analytical services to banks, financial institutions, corporates, and SMEs.

• Services: Brickwork Ratings provides ratings for various financial instruments, including bank loans, NCDs, commercial paper, and municipal bonds. The agency also offers grading services for education institutions, real estate projects, and IPOs.
• Notable Achievements: Brickwork Ratings has gained recognition for its transparent and objective rating processes, catering to a diverse clientele across India.
• Contact Information: 3rd Floor, Raj Alkaa Park, Kalena Agrahara, Bannerghatta Road, Bengaluru – 560076. Phone: +91 80 4040 9940

SMERA (SME Rating Agency of India Limited)

Founded in 2005, SMERA focuses on the ratings of small and medium enterprises. It is a wholly-owned subsidiary of SIDBI and provides comprehensive ratings and grading services.

• Services: SMERA offers credit ratings for SMEs, microfinance institutions, NBFCs, and small corporate entities. The agency also provides grading services for microfinance institutions, MSME clusters, and skill development programs.
• Notable Achievements: SMERA has carved a niche in the SME sector, offering specialised ratings supporting small business growth and development in India.
• Contact Information: The IL&FS Financial Centre, C-22, G Block, Bandra Kurla Complex, Bandra East, Mumbai – 400051. Phone: +91 22 2659 8122

Infomerics Valuation and Rating Pvt. Ltd.

Infomerics offers credit ratings, grading, and risk assessments for various sectors. It provides ratings for debt instruments, bank facilities, and small and medium enterprises.

• Services: Infomerics provides ratings for bank loans, NCDs, commercial paper, and fixed deposits. The agency also offers grading services for MSMEs, educational institutions, and real estate projects.
• Notable Achievements: Infomerics has established itself as a credible player in the credit rating industry, known for its rigorous rating methodologies and transparent processes.
• Contact Information: Flat No. 104/108, Golf Apartments, Sujan Singh Park, Maharishi Raman Marg, New Delhi – 110003. Phone: +91 11 2465 5636

Acuite Ratings & Research Limited

Acuite provides ratings and research services, focusing on transparency and investor confidence. It offers ratings for corporate bonds, bank loans, and SME ratings.

• Services: Acuite offers credit ratings for corporate bonds, bank facilities, NCDs, commercial paper, and SMEs. The agency also provides industry research, economic analysis, and advisory services.
• Notable Achievements: Acuite has gained a reputation for its robust rating processes and commitment to transparency, which has helped build investor confidence in the Indian financial markets.
• Contact Information: The Millenia Tower A, 4th Floor, No. 1 Murphy Road, Ulsoor, Bengaluru – 560008. Phone: +91 80 4664 1200

Credit Rating Process

A credit rating evaluates the creditworthiness of an entity, corporation, or individual. The credit rating process involves several steps:

Data Collection:

The credit rating agency collects detailed financial information from the individual, including credit history, income statements, outstanding debts, and other relevant financial information.

Analysis and Evaluation:

They examine various factors, including the individual’s credit history, income stability, debt levels, and overall financial health.

Rating Committee:

The analysis results are then reviewed by a rating committee composed of senior analysts. This committee ensures that the rating is objective and free from bias. After deliberating on the findings, they assign a final credit rating.

Dissemination:

The rating is also accessible to the public through the agency’s website, allowing lenders and other interested parties to easily access the rating information.

Monitoring and Surveillance:

The agency continuously monitors the individual’s financial situation to ensure the rating remains accurate and reflects their financial health. Regular updates and reviews are conducted, and the rating is adjusted as necessary based on new information or changes in circumstances.

Types of Credit Rating

Various types of credit ratings cater to different entities and financial instruments, each serving a specific purpose in the financial world:

Individual Credit Ratings:

These ratings evaluate personal creditworthiness for loans and credit cards. Credit history, income, employment status, and debt levels are considered. Lenders use individual credit ratings to assess the risk of lending to individuals and determine credit terms.

Sovereign Ratings:

These ratings assess the creditworthiness of a country. Factors considered include the country’s economic health, political stability, and ability to meet its debt obligations. Sovereign ratings are crucial for investors considering investments in a country’s debt instruments, such as government bonds.

Corporate Ratings:

These ratings evaluate corporations’ financial health. They assess the company’s financial statements, management quality, industry position, and prospects. Corporate ratings provide insights into a company’s ability to meet its debt obligations and are essential for investors in corporate bonds and other debt instruments.

Structured Finance Ratings:

These focus on complex financial instruments like mortgage-backed securities. Structured finance ratings evaluate these products’ credit risk and underlying assets. These ratings are critical for investors in structured finance products, helping them understand the risk associated with these complex instruments.

Municipal Ratings:

These ratings assess the credit quality of local government entities. They evaluate municipalities’ financial health and ability to meet debt obligations. Municipal ratings are important for investors in municipal bonds and other local government debt instruments.

How Do Credit Rating Agencies Work?

Credit rating agencies provide independent evaluations of an individual’s credit risk. Their process includes:

Data Collection:

Agencies gather extensive financial and personal data from individuals. This includes credit history, income, employment status, outstanding debts, and other relevant financial information.

Analysis:

Financial analysts scrutinise the collected data to assess the individual’s ability to meet debt obligations. They use various financial models and tools to evaluate credit risk. The analysis includes quantitative assessments, such as debt-to-income ratio and credit utilisation, and qualitative factors, such as employment stability and credit history.

Rating Assignment:

The rating committee assigns a rating based on the analysis. The rating reflects the entity’s creditworthiness and the likelihood of default.

Monitoring:

Agencies continuously monitor the rated entities and update the ratings as necessary. They review the entity’s financial health, industry conditions, and other credit risk factors. Regular monitoring ensures that the ratings remain current and reflect the entity’s true creditworthiness.

List of Credit Information Bureaus in India

Apart from credit rating agencies, India also has Credit Information Bureaus that collect and maintain the credit information of individuals and businesses:

CIBIL (Credit Information Bureau (India) Limited)

CIBIL is India’s leading credit information company, providing comprehensive credit reports. It collects and maintains credit information on individuals and businesses. Lenders widely use CIBIL reports to assess borrowers’ creditworthiness.

• Services: CIBIL offers credit reports, scores, and monitoring services.
• Contact Information: One World Center, Tower 2A, 19th Floor, Senapati Bapat Marg, Lower Parel, Mumbai – 400013. Phone: +91 22 6140 4300

Equifax

Equifax provides credit information, credit risk management, and portfolio management services. It offers a wide range of products and solutions for credit information. Equifax reports help lenders assess credit risk and make lending decisions.

• Services: Equifax provides credit reports, scores, and monitoring services.
• Contact Information: 5th Floor, Tower 3, Equinox Business Park, LBS Marg, Kurla West, Mumbai – 400070. Phone: +91 22 6112 7600

Experian

Experian offers credit information services, analytics, and decision-making tools. It provides credit reports, scores, and monitoring services to help businesses manage credit risk and improve their lending processes.

• Services: Experian provides credit reports, scores, and monitoring services, as well as data and analytics solutions, including risk assessment, fraud detection, and marketing services.
• Contact Information: 5th Floor, East Wing, Central Avenue, Hiranandani Business Park, Powai, Mumbai – 400076. Phone: +91 22 6641 9000

CRIF High Mark

CRIF High Mark provides credit bureau services, credit risk solutions, and analytics. It offers credit information products and services for individuals and businesses. CRIF High Mark reports help lenders assess credit risk and make informed lending decisions.

• Services: Credit reports, scores, monitoring, and other related services.
• Contact Information: 1901, 19th Floor, Marathon Futurex, N M Joshi Marg, Lower Parel, Mumbai – 400013. Phone: +91 22 6175 4655