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A credit rating estimates the credit worthiness of an individual, corporation, or even a country.

is an evaluation made by credit bureaus of a borrower’s overall credit history. Credit ratings are
calculated from financial history and current assets and liabilities. ...

A credit rating agency (CRA) is a company that assigns credit ratings for issuers of certain types
of debt obligations as well as the debt ...

. ...

The credit rating agencies in India mainly include ICRA and CRISIL. ICRA was formerly referred to the
Investment Information and Credit Rating Agency of India Limited. Their main function is to grade the
different sector and companies in terms of performance and offer solutions for up gradation.

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

Guidelines for Credit rating agencies in India:

The Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999 offers various
guidelines with regard to the registration and functioning of the credit rating agencies in India. The
registration procedure includes application for the establishment of a credit rating agency, matching the
eligibility criteria and providing all the details required. They have to undergo the strict examination
procedure with regard to the details furnished by them. They are required to prepare internal procedures,
abidance with circulars. They are offered guidelines regarding the credit rating procedure, by the Act. The
credit rating agencies are provided with compliance officers. They are required to show their accounting

CRISIL was set up in the year 1987 in order to rate the firms and then entered into the field of assessment
service for the banks. Highly skilled members manage the agency. Ms. Roopa Kudva who acts as the
Managing Director and Chief Executive Officer of the company heads it. The company has set up large
number of committees to look after dispersal of various services offered by the company for example,
investor grievance committee, investment committee, rating committee, allotment committee,
compensation committee and so on. The head office of the company is located at Mumbai and it has
established offices outside India also.

ICRA was established in the year 1991 by the collaboration of financial institutions, investment companies,
and banks. The company has formed the ICRA group together with its subsidiaries. The company is headed
by Mr. Piyush G. Mankad and offers products like short-term debt schemes, Issue-specific long-term rating
and offers fund based as well as non-fund based facilities to its clients