Dear Aspirants, We know all of you are getting ready for the IBPS Clerk Mains preparation to crack the exam. So the Team IG looking for the Aspirants’ needs and perfect guidance to overcome the competitive exams. Here we providing the study notes based on Credit rating Agencies in India for the General Awareness section.
Important Information About Credit Rating Agencies in India
Credit Information Bureau of India Ltd (CIBIL):
CIBIL is a credit information company and this one of the Credit Rating Agencies in India. TransUnion CIBIL is India’s leading credit information company and maintains one of the largest collections of consumer information globally. It has members including all leading banks, financial institutions, non-banking financial companies and housing finance companies and also maintains credit records of individuals and businesses.
Main objective of CIBIL is:
- To collect the data on all the loans availed by a one individual from across all banks and
- Assign a Credit Score based on how regular or irregular that person is in making payment of his/her loan interest and installments.
This Score gives an idea to a prospective lender as to how risky or safe would it be to lend money to that particular individual. It was founded in 2000 and headquartered in Mumbai, Maharashtra.
Credit Rating and Information Services of India Limited (CRISIL):
- CRISIL is a rating company. It is a global analytical company providing ratings, research, and risk and policy advisory services.
- To rate the quality of debentures, bonds, deposits etc. issued by the companies to raise debt capital from the public is the main objective of CRISIL.
- This Rating gives an idea to the investor as to how risky or safe is any particular public issue of debt by a company. It was founded in 1987 and headquartered in Mumbai, Maharashtra.
- CRISIL’s majority shareholder is Standard & Poor’s and one of the leading Credit Rating Agencies in India
- The CRISIL works with governments and policy-makers in India and other emerging markets in the infrastructure system.
Investment Information and Credit rating agency (ICRA):
ICRA Limited (ICRA) is an Indian independent and professional investment information and credit rating agency. It was set up in 1991 by leading financial/investment institutions, commercial banks and financial services companies as an independent and professional investment Information and one among the Credit Rating Agencies.
The international Credit Rating Agency Moody’s Investors Service is ICRA’s largest shareholder. The participation of Moody’s is supported by a Technical Services Agreement, which entails Moody’s providing certain high-value technical services to ICRA. Its CEO is Mr. Naresh Takkar and Headquartered in Gurgaon, India.
Objectives of ICRA:
- To provide information and guidance to institutional and individual investors/creditors.
- To enhance the ability of borrowers/issuers to access the money market and the capital market for tapping a larger volume of resources from a wider range of the investing public.
- To assist the regulators in promoting transparency in the financial markets;
- To provide intermediaries with a tool to improve efficiency in the funds raising process.
It was originally named Investment Information and Credit Rating Agency of India Limited (IICRA India) in 1991. The company changed its name to ICRA Limited, and went public on 13 April 2007, with a listing on the Bombay Stock Exchange and the National Stock Exchange.
CARE is a Credit Analysis and Research credit rating agency in India. CARE Ratings commenced operations in April 1993. It has established itself as the second-largest among the credit rating agencies in India. It has also emerged as the leading agency for covering many rating segments like that for banks, sub-sovereigns and IPO gradings.
Objectives of CARE Rating:
- To offer a range of high-quality services to all the stakeholders in the capital market and
- To ensure globally comparable quality standards in rating, research and information services.
Its Independent Chairman is Mr. S. B. Mainak and it was headquartered in Mumbai and has regional offices at Ahmedabad, Bengaluru, Chandigarh, Chennai, Coimbatore, Hyderabad, Jaipur, Kolkata, New Delhi, Pune and Mauritius.
Some International Credit Rating Agencies’ Headquarters:
- Standard & Poor’s (S&P) – New York, US
- Moody’s – New York, US
- Fitch -New York, US