Institutional Services

ICRA A Moody's Investor Services

As an early entrant in the Credit Rating business, ICRA Limited (ICRA) is one of the most experienced Credit Rating Agencies in the country today. ICRA rates rupee-denominated debt instruments issued by manufacturing companies, commercial banks, non-banking finance companies, financial institutions, public sector undertakings and municipalities, among others.

ICRA also rates structured obligations and sector-specific debt obligations such as instruments issued by Power, Telecom and Infrastructure companies. The other services offered include Corporate Governance Rating, Stakeholder Value and Governance Rating, Credit Risk Rating of Debt Mutual Funds, Rating of Claims Paying Ability of Insurance Companies, Project Finance Rating, Line of Credit Rating and Valuation of Principal Protected-Market Linked Debentures (PP-MLD).

Infrastructure Expected Loss Rating

Supporting the initiatives of the Ministry of Finance, ICRA has developed a new credit rating system for the infrastructure sector. Infrastructure projects in India have seen limited participation from long-term investors and bond markets on account of higher perceived risks and lower credit ratings. Given the focus on timely servicing of financial obligations, the conventional rating scale has limitations in providing adequate weights to unique features of infrastructure project SPVs, thereby resulting in relatively lower ratings for the infrastructure projects. In order to overcome these limitations and provide broader information on associated risks to the prospective investors, a new credit rating system for infrastructure projects has been devised. The new rating framework will comment on the expected loss (EL) of a project entity, which would factor in the probability of default (PD) and the recovery prospects. The inclusion of the recovery perspective, in ICRAʼs view, allows a distinction to be made between entities with favourable fundamentals and recovery prospects and those without.

Others Ratings