What are Credit Rating Agencies?

December 11, 2015

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With increased diversification and modernization in the investment market, it has become a challenge for the individual and institutional investors to analyze the risks associated with the different types of securities. The advent of Credit Rating Agencies has helped in facilitating a better understanding of such risks.

Importance of Credit Rating Agencies

Credit Rating is the examination of the creditworthiness of an individual, an institution or a financial identity. This rating is given on the basis of the credentials. The credit report helps in the assessment of the solvency of an individual or an entity. Credit rating directly affects the interest rate on loans. The interest rates alter depending upon the risk associated with an investment. For assessing the credit rating there are Credit Rating Agencies. The Credit Rating Agencies provide the investors with an independent analysis of the dependability of financial institutions that issue investment securities. The institutions that are assessed by Credit Rating Agencies can be non-profit organizations, companies, national governments and so.

Top Credit Rating Agencies in India

CIBIL

The Credit Information Bureau (India) Ltd is the principal agency that assesses the credit rating of individuals. The credit score provided by CIBIL is useful for both individuals and banking institutions.

CRISIL

CRISIL is a global analytical company providing Ratings, Research and Risk & Policy Advisory services.

ICRA

ICRA Limited is an Indian independent and professional investment information and credit rating agency.

SME Rating Agency

SMERA Ratings Ltd is a full service credit rating agency exclusively set up for micro, small and medium enterprises in India and has grown to rate SME, mid & large corporate

Experian India

With Experian India, you can check your credit report and credit score from Experian India.

CRIF High Mark

CRIF High Mark is a credit information bureau providing services to all segments. MSME and Commercial borrowers, Retail consumers, Microfinance borrowers.