0% found this document useful (0 votes)
13 views17 pages

CRISIL Industry Profile Overview

CRISIL was incorporated in 1987 as India's first credit rating agency to analyze, rate, and evaluate securities like loans, debentures, and shares. Over the years, it expanded its services, opened new offices, and partnered with international rating agencies. By the late 1990s, CRISIL was rating a wide variety of instruments including government bonds, corporate debt programs, and commercial paper for numerous public and private sector companies across industries.

Uploaded by

anon-567920
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
13 views17 pages

CRISIL Industry Profile Overview

CRISIL was incorporated in 1987 as India's first credit rating agency to analyze, rate, and evaluate securities like loans, debentures, and shares. Over the years, it expanded its services, opened new offices, and partnered with international rating agencies. By the late 1990s, CRISIL was rating a wide variety of instruments including government bonds, corporate debt programs, and commercial paper for numerous public and private sector companies across industries.

Uploaded by

anon-567920
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd

INDUSTRY PROFILE

1) CRISIL:

YEAR EVENTS
1987 - The Credit Rating Information Services of India Limited
(CRISIL),
was incorporated on January 29, as a Public Limited Company,
was
promoted by leading financial institutions, and a host of
nationalised Banks, foreign Banks and private sector Banks,
with
the main promoters being The Industrial Credit and Investment
Corporation of India Limited (ICICI), Unit Trust of India
(UTI)
and Housing Development Finance Corporation Limited (HDFC).
The
Company, which obtained the Certificate of Commencement of
Business on 3rd March.

- The unit was set up with the objective of analysing, rating


and
evaluating various securities and instruments such as loans,
debentures, shares etc.

- Three new centres of excellence headed by senior executives


were
created to cover financial sector, infrastructure sector and
manufacturing sector.

1991 - The Company provided technical assistance and training to


rating
agency in Malaysia Berhad (RAM). In addition the Company
provided technical assistance and training to MAALOT, the
Israeli
Securities Rating Company Ltd.

1992 - 42,00,000 No. of equity shares allotted to promoters ICICI


along
with other institutions and banks.

1993 - The Company launched Ratings Digest a compilation in five


volumes
of Crisils rating reports organised by industry categories.

1
Also
`Bancard' analysed information on select banks and
`Crisilview'
containing analysed information together with Crisils opinion
on
credit standing of any listed company were launched.

- 20,00,000 new shares issued at a premium of Rs 40 per share


of
which the net offer to the Indian public was 16,50,000
shares.

1994 - Three new regional offices were opened at Hyderabad,


Chandigarah
and Pune. It was the first rating agency to rate commercial
papers in 1989, debt instruments of financial institutions
and
banks in 1992 and asset backed securities in 1992.

- The company launched its rating service for real estate


developers projects. The Advisory Services Group carried out
credit assessments of several state Governments and State
Electricity Boards at the behest of investors setting up
power
project.

- The Investment Research Division introduced Ecoscan a


software
package representing the macroeconomic data on Indian economy
through a menudriven user interface. The other product
Crisilview provides opinion on the credit standing of almost
any
listed company in India.

1996 - CRISIL also developed and launched municipal bond ratings and
developed methodologies for other public bodies.

- During the year Standard & Poor's Rating Services, USA signed
an
agreement with Asian Development Bank to acquire 9.6% interest
in
CRISIL that ADB owned which is subject to approval by RBI.

1997 - During the year, the Company introduced `Criservice' a


retainership service positioned to service the total research
requirements of the clients, a company analytical product

2
providing earnings forecast on companies by Crisil Research &
Information Services, two segment specific equity indices
viz.
Crisil MCN Index and the Crisil Indian Business Group Index,
the
real time calculation and dissemination of Crisil Equity
indices
and the bond valuation service to price non-traded bonds held
by
mutual funds.

- A joint venture agreement was entered into between CRISIL,


NSE
and Standard & Poor's Financial Information Services for
carrying
out Index business and related activities.

- Credit Rating and Information Services India Ltd (Crisil) is


tie-up with the Mumbai Stock Exchange (BSE) to promote the
Crisil-500 index among its members.

- Standard & Poor's Rating Services, the world's largest rating


agency, cemented its business alliance with the Credit Rating
Information Services of India Ltd (Crisil) further by
acquiring
a minority 9.6 per cent stake in it.

- The Credit rating Information Services of India Ltd (Crisil)


has launched two segment benchmark equity indices - Crisil
MNC
Index and Crisil Indian Business Groups Index.

- For the first time a state government body, Gujarat


Industrial
Investment Corporation has planned to tie up with a credit
rating agency, Crisil, to avail to their multi pronged
services.

- Credit Rating & Information Services of India Ltd (Crisil)


has
downgraded the fixed deposit programmes of Arihant Credit
Capital Ltd and Nucleus Securities Ltd. Arihant's FD
programme
has been downgraded from FA- to FB+ while Nucleus Securities
FD
programmes has been downgraded from FA to FA-.

3
- The Credit Rating Information Service of India Limited
(CRISIL)
has assigned A rating to Rs 1 billion bond issue of the
Bangalore City Corporation (BCC).

- Credit Rating Information Services of India (Crisil) has


assigned an AAA (structured obligation) rating to the
upcoming
Rs.250-crore infrastructure bond issue of the Konkan Railway
Corporation (KRCL).

- Crisil has assigned a P1 + for the Rs.100-crore commercial


paper
issue of Asea Brown Boveri, the Rs.20-crore commercial paper
of
Burroughs Wellcome (India), the Rs.20-crore commercial paper
of
Nahar Spinning Mills, and the Rs.110-crore commercial paper
of
Ranbaxy Laboratories.

- The Credit Rating Information Services of India Ltd (Crisil)


has upgraded the rating of four bond issues of Sardar Sarovar
Narmada Nigam Ltd from A (so) to A+(so).

- Credit Rating and Information Services of India ltd has


assigned
an AAA rating for the Videsh Sanchar Nigam Ltd's (VSNL),
Rs.100
crore debt programme, indicating highest safety of timely
payment
of interest and principal.

- The Credit Rating Information Services of India Ltd) (Crisil)


has downgraded the rating assigned to Bombay Dying &
Manufacturing Company's to `AA+' (double A plus) for its Rs.
23.35 crore NCD programme and Rs. 68.89 crore secured premium
notes (SPN).

- The Credit Rating Information Services of India Limited


(CRISIL)
has assigned a triple A rating to Industrial Credit and
Investment Corporation of India Limited's (ICICI) debenture
programme of Rs 30 billion with a green shoe option of
additional

4
Rs 30 billion indicating the highest safety regarding timely
payment of interest and prinicpal. All the outstanding
ratings
of the ICICI have been reaffirmed.

- The Credit Rating and Information Services of India Ltd


(Crisil) has assigned P1+ ratings to the debt programmes of
Wipro and Bajaj Auto Finance Ltd.

- The Credit Rating Information Services of India Ltd (CRISIL)


on
Friday said it had assigned a `P1' rating to the Rs 10 crore
commercial paper issue of Tata Finance Ltd.

1998 - The Credit Rating Information Services of India (CRISIL) has


downgraded the debt programmes of Ashok Leyland, Kothari
Sugars
and Chemicals (KSCL), Lloyds Steel Industries (LSIL) and
Pennar
Aluminium Company (PALCO).

- Credit Rating Information Services of India Limited (Crisil)


has downgraded the fixed deposit programme (FDP) rating of
Arihant Credit Capital Limited (ACCL) from `FB', indicating
that the issue was either in default or was expected to be in
default upon maturity.

- The Credit Rating Information Services of India Ltd (Crisil)


has assigned a P1+ rating to the Rs.150-crore commercial
paper
(CP) programme of Indian Aluminium Company Ltd (Indal).

- The Credit Rating Information Services of India Ltd (Crisil),


has downgraded the partly convertible debentures of Hindustan
Development Corporation and the fixed deposit programme of
Premier Housing and Industrial Enterprises Ltd.

- The Credit Rating Information Services of India Ltd (Crisil)


has downgraded the Rs.17-crore non-convertible debenture
(NCD)
plan of Welspun India Ltd (WIL) from A to triple-B.

- The Credit Rating Information Services of India Ltd (Crisil)


has assigned a triple-A (SO) rating to the Rs.235-crore bond
programme of National Capital Region Planning Board (NCRPB).

5
- The Credit Rating and Information Services India Ltd.
(CRISIL)
has downgraded the credit ratings of the instruments of Cifco
Finance Ltd. (CFL) and Rajasthan Petro Synthetics Ltd.
(RPSL)
to default status from inadequate safety, a Crisil press
release stated. The fixed deposit rating of Cifco Finance
has
been lowered to FD (default) from FB (inadequate safety).

- The Credit Rating Information Services of India Ltd (Crisil)


has assigned an A-(SO) rating to the Rs.500-crore bond
programme of Andhra Pradesh State Electricity Board (APSEB).

- Credit Rating Information Services of India Ltd (Crisil) has


assigned an `AAA' rating to New India Assurance company.

- The Credit Rating Information Services of India (Crisil) has


placed the outstanding ratings of A-plus and FAA-minus
assigned
to Anagram Finance Ltd's debenture issues and fixed-deposit
programmes on rating watch with developing implications.

- Crisil has assigned a P1+ rating to the Rs.10 crore


commercial
paper programme of Seagram Manufacturing Pvt Ltd, a subsidiary
of
the Seagram Company Ltd.

- Credit Rating Information Services of India (Crisil) has


assigned
a P1+ rating to the Rs. 100-crore commercial paper programme
of
Wipro Ltd.

- The rating assigned to the fixed deposit programme of


Coimbatore-based Annamalai Finance Limited has been
downgraded
from `Fa+ to `Fa by the Credit Rating Information Services of
India Limited. 21/08/98

- The Credit Rating and Information Services of India Ltd


(Crisil)
and the National Stock Exchange (NSE) have come together to
form
a 50:50 joint venture company called India Index Services and

6
Products Ltd (IISL).

- The Credit Rating Information Services of India Limited has


assigned a `P1' rating to the Rs 500-million commercial paper
programme of Century Textiles and Industries Limited.

- Credit Rating Information Service of India Ltd (Crisil) has


downgraded the fixed deposit and non-convertible debenture
(NCD)
issue programmers of Sicom.

- The Credit Rating Information Services of India Limited


(Crisil)
has downgraded the fixed deposit programme of the Srei
International Finance Limited from FA + to FA.

- Crisil has assigned a P1 + rating to the Rs 19.35-crore


commercial paper programme of Parke-Davis.

- Credit Rating Information Services (Crisil) has downgraded


Kalyani Steels Ltd's Rs 10-crore non convertible debenture
(NCD)
issue and the Rs 51-crore NCD issue from A to BBB+,
indicating
moderate safety.

- The Credit Rating Information Services of India Limited


(CRSIL)
has assigned a P1 rating to the Rs 120 million Commercial
Paper
Programme of Chicago Pneumatic India Ltd (CPIL).

1999 - Credit Rating and Information Services of India Ltd (Crisil),


has
decided not to make ratings issued for private placements of
debt
public any longer.

- Credit Rating & Information Services India Ltd (Crisil) has


developed a software for uniform valuation of non-traded debt
securities of mutual funds.

- The Andhra Pradesh State Electricity Board (APSEB) has


commissioned the services of Credit Rating Information
Services
of India Ltd. (CRISIL) to undertake an evaluation of the

7
escalation in capital cost of the 235 MW gas-fired private
power
station in Jegurupadu.

- The rating assigned to SAIL's FD programme has also been


downgraded from `FA-' to `FB+', again reflecting inadequate
safety.

- The Credit Rating Information Services of India Limited


(Crisil)
today entered into an agreement with the National Real Estate
Developers Council (Naredco) to rate real estate projects.

- Crisil had assigned a `BBB' rating for Ballarpur Industries's


non-convertible debenture programmes amounting to Rs. 179.99
crores and an `FA-' rating for its fixed deposit programme.

2000 - Credit Rating Information Services of India Ltd. has assigned


`AAA' (triple A) rating to the Rs 1-billion debenture
issue of
Larsen & Toubro Ltd.

- Crisil has upgraded `A' rating assigned to the Rs


175-crore
non-convertible debenture (NCD) issue of Bharti Cellular
to AA-
(high safety with relatively lower standing within the
category)
rating.

- The Board approved the formation of a new subsidiary,


[Link]
Ltd. Crisil has launched a Web site to provide
comprehensive
information and decision support system for business and
personal
investment needs.

- Crisil has downgraded the FA+ rating assigned to the


fixed
deposit programme of New Kenilworth Hotel to FA.

- Crisil has assigned BBB+ (moderate safety with relatively


higher
standing within the category) rating to the two non
convertible

8
debenture issues aggregating Rs 6.66 crore of Stone
India on
rating watch with development implications.

- Crisil has upgraded the FA- rating assigned to the FD


programme
of Andhra Bank Housing Finance to FA.

- Crisil has assigned a P1+ rating to the Rs 26.80 crore


commercial
paper (CP) programme of Parke Davis India.

- Criril has reaffirmed the AAA rating assigned to a Rs 150


crore
NCD issue of ITI.

- Crisil has assigned a P1+ rating to the CP programme of


Highway
Cycle Industries for an enhanced amount of Rs 11 crore.

- Crisil has assigned a P1+ rating to the proposed Rs 10


crore
short term debenture programme of GMAC-TCFC Finance.

- Crisil has introduced a new rating category titled `not


meaningful' (Nm) for all of its three existing rating
scales.

- The Company has assigned a `AAA (SO)' rating to the first


ever
issue of mortgage-based securities backed by mortgages
originated
by HDFC.

- The Company has suspended `Fd' rating indicating default,


for the
fixed deposit programme of Synergy Financial Exchange
Ltd. and
Shoppers' Investment and Finance Company Ltd.

- The Crisil has assigned an A (SO) rating to the proposed


Rs
3500 crore programme of Andhra Pradesh Power Finance
Corporation.

- Crisil has suspended the ratings assigned to the fixed

9
deposit
programmes of Allianz Capital of management Services
Ltd, BCL
Financial Services Ltd. and Aravali Securities and
Finance Ltd.

- Credit Rating Information Services of India Ltd has


upgraded the Rs 29.4
crore non-convertible debentures (NCDs) issue of
pharmaceutical firm
Wockhardt Ltd to AA+ from AA.

- The Company has downgraded the ratings of Eicher Ltd's


Rs 31.6 crore
non-convertible debenture NCD issue and the fixed
deposit FD programme.

- Investment Information and Credit Rating Agency Ltd has


assigned an `A1 +'
rating to the Rs. 5-crore commercial paper programme of
Liberty shoes Ltd.

- The Company has launched economic data tool EcoPlus.

- CRISIL is set to launch a composite index to reflect NAVs


of all diversified equity funds.

- Crisil has launched three mutual fund indices for


open-end funds - general equity
funds index (Crisil Fund-eX), general debt funds index
(Crisil Fund-dX) and general
balanced funds index (Crisil Fund-bX).

- The Company has placed the `AAA' rating assigned to the


bond issues of Small
Industries Development Bank of India and the `FAAA'
rating assigned to the fixed
deposit programme of SIDBI on rating watch with negative
implications.

2001 - Crisil, has entered into an alliance with [Link], a


leading B2B online tea
exchange, to provide e-commerce evaluation and
e-commerce rating services for
[Link] exchange participants.

10
- The Credit Rating Information Services of India has
downgraded the outstanding
FA+ rating on fixed deposit rating programme of SAI
Service Station to FA.

2002

-Starts the rating services to Healthcare companies.

-Ties up with Getit Infomediary Ltd to offer certification and


verification services called TrustMe for businesses and the service
industry.

-Board approves for the allotments of 65000 shares to the employees


and wholetime directors.

-Mr R Ravimohan gives resignation as MD of Crisil.

-Five states together form 50% aggregate state level guarantees to


encounter aggregate debt servicing obligation.

-Assigns highest rating to Citibank's loan securitisation program


worth Rs. 28.41cr.

-Mr A V Rajwade ceases to be the Director on the Board of the


company.

-Crisil Infrastructure Advisory undertakes integrated infrastructure


development projects.

-According to its Research Centre, the GDP of the country will grow
at 5.52% and inflation would touch 3.5 - 4% in the fiscal year.

2003

-Demotes Rs.600 cr bonds issue of Bank of Baroda from AAA to AA+.

-Allotment Committee of the board allots 9200 equity shares of Rs.10


each of the company to the employees under ESOP scheme.

-Crisil grants permission and allots 67500 number of options to the


employees and wholetime directors.

-Housing Finance Sector disbursements grow 54% between April -


December.

11
-The Draft Paper envisages the differential power tarrifor both peak
and off-peak hours for the development of demand side management.

-Board approves for the change in the name of the company to 'CRISIL
Limited'.

-Launches the 'Crisil Awards for excellence in Municipal Initiatives'


.

-Tightens the methods of assessing the credit worthiness of state


governments guaranteed papers and begins that guarantors fund the
liabilities.

-OpenheimerFunds acquires 3,13,233 shares of the company representing


5.02% of the paid up capital.

-Rating trends indicates the improvement in the Indian Economy would


continue to grow at 7.1%.

-Launches 'rating outlooks' on ratings of long term instruments and


fixed deposits floated by corporates.

-Allots 4000 equity shares of Rs.10 each of the company under ESOP
scheme.

-Mr Rakesh Jhunjhunwala along with wife Rekha Jhunjhunwala acquire


10000 shares of the company amounting to 0.16% of the total paid up
capital of the company.

-Allotted 19300 equity shares of the Company on exercising Stock


Options granted to employees under the Employees Stock Option Scheme
of the Company.

-CRISIL acquires leading Global Gas Advisory & Information Company

-The Credit Rating Information Services Of India Ltd has informed


that The Central Government has approved the change of the name of
the Company from 'The Credit Rating Information Services of India
Ltd' to 'CRISIL LIMITED' w.e.f December 15, 2003.

-Crisil buys out London-based gas advisory firm

2004

-The Credit Rating Information Services Of India Ltd has informed


that the BOD at their meeting held on January 02, 2004, appointed Mr

12
H N Sinor as additional director to hold the office upto the date of
the ensuing AGM.

-CRISIL makes strategic equity investment in NCDEX

-The Credit Rating Information Services Of India Ltd has informed


that Mr. H.N. Sinor was appointed as Additional Director on the Board
of the Company on January 2, 2004 and his share holding is NIL.

- Rating agency Crisil Ltd announced its strategic equity investment


in the Caribbean Information and Credit Rating Agency Ltd. Caribbean
Information is a .5 million entity and multilateral agencies hold a
stake in it. Crisil has picked up around nine per cent in the share
capital of the Caribbean company for lakh. It will also provide
technical assistance to the agency to establish and stabilise its
operations.

- Crisil introduces net rating system for public floats

2005

-Kotak Mahindra Captial Company Limited (Manager to the Offer), has


informed that The Mc-Graw-Hill Companies,Inc., a company incorporated
under the laws of the State of new York in the United States of
America (MHC) and S&P India LLC,a company incorporated under the laws
of the state of Delware in the United sates of America,acting (S&P
India and, collectively with MHC, Acquirers),acting in concert with
each other pursuant to an in compliance with, among others,
regulations 10 and 12 of the SEBI(Substantial Acquisition of shares
and Takeovers)Regulations 1997,as amended(Regualtions) are making
this voluntary offer to acquire up to 3,534,488 fully paid up equity
shares(Offer Size) of CRISIL Limited(Target Company) representing
55.67% of the voting equity capital(Share Capital) of the target
company as on December 31,2004 at a price of Rs.680 for each share of
the target company (such price,theOffer Price) to be paid in cash
accordance with the Regulations.

13
2) ICRA:

Over the Years: A Chronicle

ICRA Limited (formerly Investment Information and Credit Rating Agency of India
Limited) was set up in 1991 by leading financial/investment institutions, commercial
banks and financial services companies as an independent and professional Investment
Information and Credit Rating Agency. Today, ICRA and its subsidiaries together form
the ICRA Group of Companies (Group ICRA). ICRA Limited is a Public Limited
Company, with its shares listed on the Bombay Stock Exchange and the National Stock
Exchange.

2008

> ICRA Management Consulting Services Limited and Virtus Global Partners Inc. sign a
Memorandum of Understanding to jointly offer advisory/consulting services to clients
based in the USA and in India.

> ICRA Techno Analytics Limited acquires Axiom Technologies Private Limited, a
Kolkata-based software services company.

> ICRA Management Consulting Services Limited and Dun & Bradstreet Philippines,
Inc. sign a Memorandum of Understanding to jointly offer advisory/consulting services in
the Philippines.

2007

> The Equity Shares of ICRA Limited are listed on the Bombay Stock Exchange and
National Stock Exchange on April 13, 2007.

> Moody’s Investment Company India (Pvt.) Limited makes additional investments in
the equity shares of ICRA Limited.

> ICRA Limited renews its Technical Cooperation Agreement with the Credit Rating
Agency of Bangladesh (CRAB) for another three years.

2006

> ICRA Limited acquires Computer Exchange Private Limited (subsequently renamed
ICRA Techno Analytics Limited).

14
> ICRA Limited acquires a majority stake in ICRA Online Limited.
> ICRA Limited demerges its Consulting Division and transfers the same to ICRA
Management Consulting Services Limited with effect from April 1, 2005.

2005

ICRA launches the NSIC-ICRA Performance and Credit Rating Scheme for Small Scale
Enterprises in India.

2004

> ICRA Limited enters into a 'Technical Services Agreement' with Credit Rating &
Collection, Kuwait on December 26, 2001 for a period of three years. The said
Agreement extended for a further period of three years with effect from December 26,
2004.

> Moody’s Investment Company India (Pvt) Limited increases its equity stake in ICRA
Limited.

> ICRA Limited launches the service of Grading of Maritime Training Institutes in India.

> ICRA Limited launches Outsourced Services Group.

> ICRA Limited launches the service of Grading of Mutual Fund Management Quality.

2003

> ICRA Limited and Online [Link] enter into a Shareholder and Subscription
Agreement, besides a Technical Services Agreement. (Online [Link] is
subsequently renamed ICRA Online Limited).

> ICRA Limited launches Project Finance Assessment/Rating Service.

2002

>ICRA launches a Grading Scheme for Healthcare institutions in India.

2001

> Moody’s Investment Company India (Pvt.) Limited becomes the largest shareholder in
ICRA Limited by acquiring an additional 9% equity stake.

> ICRA Limited and the National Real Estate Development Council (NAREDCO) jointly
launch the ICRA-NAREDCO Grading System for real estate developers and projects.

15
> ICRA Limited launches its Corporate Governance Ratings (CGR) for the Indian Market
with a focus on corporates’ business practices and quality of disclosure standards.

1999

> Moody's Investors Service (Moody’s) and ICRA Limited sign an Agreement that
enables Moody’s to make an equity investment in ICRA Limited and provide technical
services to it.

> ICRA Limited launches Grading Service for entities involved in construction projects
including contractors, consultants, project owners and the project itself.

> ICRA Limited launches Rating service for Debt Fund Scheme of Indian Mutual Funds.

> ICRA Limited becomes the first Indian Rating Agency to rate all Non-Life Insurance
companies in the country.

1998

> Moody's Investors Service (Moody’s) and ICRA Limited announce their mutual
agreement to Moody's picking up a minority stake in the equity capital of ICRA Limited.

> ICRA introduces a Rating Methodology for the Claims Paying Ability of General
Insurance companies in India.

1997

> ICRA Limited launches ICRA Bulletin: Money & Finance, a periodical publication
directed towards institutions and individuals with an interest in understanding the reasons
underlying policy initiatives and outcomes

1996

> ICRA Limited signs an agreement with Financial Proformas Inc (FPI), now called
Moody’s Risk Management Services to provide credit education, risk management
software, credit research and consulting services to commercial banks, financial and
investment institutions, financial services companies and mutual funds in India.

1995

> ICRA Limited launches the service of Credit Assessment for small and medium scale
industries (under the Cluster Approach of the Confederation of Indian Industry).

> ICRA Limited launches the service of Earnings Prospects and Risk Analysis (EPRA)
for the Equity Investors.

16
1993

>ICRA Limited launches Investment Information Service and Research Publications

1991

> ICRA Limited launches Credit Rating Service on September 1, 1991.

> Investment Information and Credit Rating Agency of India Limited (later renamed
ICRA Limited) is incorporated on January 16, 1991.

17

Common questions

Powered by AI

A downgrade from FA+ to FA indicates a reduction in the perceived credit quality of a company's fixed deposit programme. This change reflects an increase in credit risk, suggesting that while the company's financial obligations are still considered safe, they are now perceived to be more vulnerable to adverse business or economic conditions .

Between 1998 and 2005, entities like ICRA expanded their services and influence in the credit rating industry through strategic partnerships, business diversification, and international cooperation. Their actions included collaborations with international firms like Moody's, launching new grading services for various sectors, and establishing agreements to enhance technical expertise. These expansions reflected a dynamic response to increasing market demands and were instrumental in shaping a more integrated and varied credit rating landscape in India .

Moody's increased equity stake in ICRA Limited might be strategically driven to strengthen its foothold in the Indian credit rating market, enhance its influence in ICRA's operational decisions, and leverage ICRA's local expertise to expand its own service offerings. The impact on ICRA's operations could include access to Moody's global resources, potential enhancements in rating methodologies, and expanded market reach, but could also lead to challenges such as maintaining its local identity and decision-making autonomy .

A 'P1+' credit rating indicates that the commercial paper programme of a company like Wipro Ltd is of the highest credit quality with the lowest credit risk. It suggests a very strong ability to meet its financial commitments in the short term .

The introduction of a 'not meaningful' (Nm) rating category by CRISIL likely reflects an adaptation to new complexities in the financial landscape where traditional ratings may not apply effectively. This category indicates cases where issued ratings do not fit into conventional scales, allowing CRISIL to address uncertainties and ambiguities effectively without misrepresenting the financial position of entities with non-standard debts .

CRISIL's strategic partnerships and joint ventures, such as acquiring a stake in Caribbean Information and Credit Rating Agency Ltd and its investment in NCDEX, enhance its market position by diversifying its services portfolio and expanding its geographical reach. These actions enable CRISIL to offer a broader range of services, improve market penetration, and potentially leverage cross-border expertise to strengthen its overall market position .

The acquisition of a Global Gas Advisory & Information Company by CRISIL positions it to diversify its service offerings and enhance its expertise in the global energy sector, allowing it to serve a broader client base. This strategic move helps CRISIL to access new markets and clientele, driving revenue growth and potentially providing competitive advantages through enhanced industry knowledge .

A 'AAA (SO)' rating suggests the highest level of creditworthiness for a bond programme, with the 'SO' denoting that it is a structured obligation backed by external support such as guarantees or collateral. This indicates that Andhra Pradesh Power Finance Corporation's bond programme is considered extremely safe for investors and has a very low risk of default .

Crisil's decision to stop disclosing ratings for private debt placements could stem from several factors including the desire to protect sensitive financial information of issuers, regulatory changes, or the evolution of investor preferences towards greater privacy in privately placed instruments. This move might also be aimed at focusing on more public and widely disseminated ratings, thereby streamlining their reporting processes .

The formation of India Index Services and Products Ltd (IISL) as a joint venture can provide CRISIL with benefits such as increased market share, enhanced brand recognition, and product diversification in index services. However, it also carries risks such as the management challenges of aligning objectives between partners, potential cultural clashes, and the possibility of financial losses if the venture does not meet commercial expectations .

You might also like