{"id":10277,"date":"2026-07-08T12:09:56","date_gmt":"2026-07-08T06:39:56","guid":{"rendered":"https:\/\/www.fatakpay.com\/blog\/?p=10277"},"modified":"2026-07-08T13:50:38","modified_gmt":"2026-07-08T08:20:38","slug":"credit-rating-agencies-in-india","status":"publish","type":"post","link":"https:\/\/www.fatakpay.com\/blog\/credit-score\/credit-rating-agencies-in-india\/","title":{"rendered":"Credit Rating Agencies in India: Top Agencies, Functions &amp; How They Work"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">When you apply for a loan, lenders do not just take your word for it. They look at ratings assigned by credit rating agencies. Credit rating agencies in India assess the ability of borrowers to repay debt, assigning grades that range from AAA to D. These agencies evaluate the financial strength of companies and debt instruments, helping lenders decide who to trust with money. In India, nine SEBI-recognised credit rating agencies guide billions of rupees in lending and investment decisions every day.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/credit-rating-agencies-in-india\/#What_is_a_credit_rating_agency\" >What is a credit rating agency?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/credit-rating-agencies-in-india\/#Credit_rating_vs_credit_score\" >Credit rating vs credit score<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/credit-rating-agencies-in-india\/#List_of_credit_rating_agencies_in_India\" >List of credit rating agencies in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/credit-rating-agencies-in-india\/#Top_credit_rating_agencies_explained\" >Top credit rating agencies explained&nbsp;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/credit-rating-agencies-in-india\/#%E2%97%8F_CRISIL_ratings\" >\u25cf CRISIL ratings&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/credit-rating-agencies-in-india\/#%E2%97%8F_ICRA_limited\" >\u25cf&nbsp;ICRA limited<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/credit-rating-agencies-in-india\/#%E2%97%8F_CARE_ratings\" >\u25cf&nbsp;CARE ratings<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/credit-rating-agencies-in-india\/#%E2%97%8F_India_ratings_and_research\" >\u25cf India ratings and research<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/credit-rating-agencies-in-india\/#%E2%97%8F_Acuite_ratings_research\" >\u25cf&nbsp;Acuite ratings &amp; research&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/credit-rating-agencies-in-india\/#%E2%97%8F_Brickwork_ratings\" >\u25cf&nbsp;Brickwork ratings<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/credit-rating-agencies-in-india\/#%E2%97%8F_Infomerics_valuation_and_rating\" >\u25cf Infomerics valuation and rating<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/credit-rating-agencies-in-india\/#%E2%97%8F_Acer_credit_rating_CredStone_rating\" >\u25cf&nbsp;Acer credit rating &amp; CredStone rating<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/credit-rating-agencies-in-india\/#Functions_of_credit_rating_agencies\" >Functions of credit rating agencies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/credit-rating-agencies-in-india\/#How_the_credit_rating_process_works\" >How the credit rating process works<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/credit-rating-agencies-in-india\/#Who_regulates_credit_rating_agencies_in_India\" >Who regulates credit rating agencies in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/credit-rating-agencies-in-india\/#Why_credit_ratings_matter_for_investors_borrowers\" >Why credit ratings matter for investors &amp; borrowers<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/credit-rating-agencies-in-india\/#For_investors\" >For investors:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/credit-rating-agencies-in-india\/#For_borrowers\" >For borrowers:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/credit-rating-agencies-in-india\/#Conclusion\" >Conclusion&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/credit-rating-agencies-in-india\/#FAQs\" >FAQs\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/credit-rating-agencies-in-india\/#Q_How_many_credit_rating_agencies_are_there_in_India\" >Q. How many credit rating agencies are there in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/credit-rating-agencies-in-india\/#Q_Which_is_the_top_credit_rating_agency_in_India\" >Q. Which is the top credit rating agency in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/credit-rating-agencies-in-india\/#Q_What_is_the_difference_between_a_credit_rating_and_a_credit_score\" >Q. What is the difference between a credit rating and a credit score?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/credit-rating-agencies-in-india\/#Q_Who_regulates_credit_rating_agencies_in_India\" >Q. Who regulates credit rating agencies in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/credit-rating-agencies-in-india\/#Q_What_does_a_AAA_rating_mean\" >Q. What does a AAA rating mean?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/credit-rating-agencies-in-india\/#Q_How_do_credit_rating_agencies_make_money\" >Q. How do credit rating agencies make money?&nbsp;<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_credit_rating_agency\"><\/span><strong>What is a credit rating agency?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A credit rating agency (CRA) analyses the financials of a borrower, including debt levels, repayment history, cash flows, and industry position, and translates that analysis into an alphanumeric grade such as AA+ or BBB\u2013. In India, credit rating companies cover a wide range of instruments: securities, bank loans, commercial papers, and fixed deposits. The issuer, i.e., the company seeking the rating, pays the CRA for the assessment. Once assigned, a rating is reviewed regularly and can be upgraded, downgraded, or reaffirmed depending on how the finances of a company change.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Credit_rating_vs_credit_score\"><\/span><strong>Credit rating vs credit score<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">People often use credit rating and credit score interchangeably, but they measure two very different things.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Parameter<\/strong><\/td><td><strong>Credit Rating<\/strong><\/td><td><strong>Credit Score<\/strong><\/td><\/tr><tr><td>Who it applies to<\/td><td>Companies, governments, and debt instruments<\/td><td>Individual borrowers<\/td><\/tr><tr><td>Assigned by<\/td><td>Credit rating agencies (ex. CRISIL, ICRA)<\/td><td>Credit bureaus (ex. CIBIL, Experian)<\/td><\/tr><tr><td>Format<\/td><td>Alphabetic; AAA to D<\/td><td>Numeric; 300 to 900<\/td><\/tr><tr><td>Regulated by<\/td><td>SEBI<\/td><td>RBI<\/td><\/tr><tr><td>Used by<\/td><td>Investors, lenders, regulators<\/td><td>Banks, NBFCs, digital lenders<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">While credit ratings assess the creditworthiness of companies and debt instruments, your personal borrowing profile is reflected through your credit score. If you are planning to apply for a loan, <a href=\"https:\/\/www.fatakpay.com\/check-cibil-score\"><strong>check your CIBIL Score<\/strong><\/a> to understand where you stand before approaching a lender.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"List_of_credit_rating_agencies_in_India\"><\/span><strong>List of credit rating agencies in India<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">As of June 2026, nine credit rating agencies in India are officially registered with SEBI. Here are those credit rating agencies operating in the country:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>CRISIL Ratings Limited:<\/strong> Founded in 1987 as the first credit rating agency in India, a subsidiary of S&amp;P Global<\/li>\n\n\n\n<li><strong>ICRA Limited:<\/strong> Set up in 1991 by leading financial institutions and commercial banks; Moody&#8217;s is its indirect largest shareholder<\/li>\n\n\n\n<li><strong>CARE Ratings Limited (CareEdge):<\/strong> Established in 1993 as Credit Analysis and Research Limited<\/li>\n\n\n\n<li><strong>India Ratings and Research Pvt. Ltd. (Ind-Ra):<\/strong> A 100% subsidiary of the Fitch Group<\/li>\n\n\n\n<li><strong>Acuite Ratings &amp; Research Limited:<\/strong> A full-service CRA registered with SEBI and accredited by RBI<\/li>\n\n\n\n<li><strong>Brickwork Ratings India Pvt. Ltd.:<\/strong> Founded in 2008, headquartered in Bengaluru<\/li>\n\n\n\n<li><strong>Infomerics Valuation and Rating Pvt. Ltd.:<\/strong> SEBI-registered and RBI-accredited; headquartered in New Delhi<\/li>\n\n\n\n<li><strong>Acer Credit Rating Pvt. Ltd.: <\/strong>Incorporated in January 2024; headquartered in Gurugram<\/li>\n\n\n\n<li><strong>CredStone Ratings Pvt. Ltd.:<\/strong> Newest entrant; received SEBI registration in May 2026; headquartered in Mumbai<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Top_credit_rating_agencies_explained\"><\/span><strong>Top credit rating agencies explained&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%E2%97%8F_CRISIL_ratings\"><\/span>\u25cf <strong>CRISIL ratings&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">CRISIL introduced India&#8217;s first corporate sector rating in 1987 and today rates one out of every two companies in India. Its ratings business has rated 35,000+ large and medium-scale entities. Its rating notation uses plain letter symbols: CRISIL AAA, CRISIL AA, and so on.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%E2%97%8F_ICRA_limited\"><\/span>\u25cf&nbsp;<strong>ICRA limited<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">ICRA rates rupee-denominated debt instruments across commercial banks, NBFCs, PSUs, manufacturing companies, and municipal bodies. It uses bracket symbols, [ICRA]AAA and [ICRA]AA, to distinguish its ratings from those of other agencies.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%E2%97%8F_CARE_ratings\"><\/span>\u25cf&nbsp;<strong>CARE ratings<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">It is the second-largest rating agency in India, holding leadership positions in high-growth sectors such as BFSI and infrastructure.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%E2%97%8F_India_ratings_and_research\"><\/span>\u25cf <strong>India ratings and research<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">It maintains coverage of corporate issuers, financial institutions, finance companies, urban local bodies, and structured finance and project finance companies. Its rating notation uses the &#8220;IND&#8221; prefix, such as IND AAA or IND AA.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%E2%97%8F_Acuite_ratings_research\"><\/span>\u25cf&nbsp;<strong>Acuite ratings &amp; research&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Acuite Ratings, formerly known as SMERA Ratings Limited, is promoted by SIDBI, Dun &amp; Bradstreet. Its focus on SMEs and mid-corporate debt fills a gap that the larger agencies have historically underserved.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%E2%97%8F_Brickwork_ratings\"><\/span>\u25cf&nbsp;<strong>Brickwork ratings<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Brickwork Ratings has developed proprietary credit risk rating models customised for large corporates, MSMEs, banks, financial institutions, and state and local governments. It also assesses the creditworthiness of schools, colleges, and infrastructure projects.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%E2%97%8F_Infomerics_valuation_and_rating\"><\/span>\u25cf <strong>Infomerics valuation and rating<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">It uses in-house credit rating models developed with the aid of machine learning-based frameworks to estimate the probability of default. Its grading services also cover corporate governance ratings, construction entities, engineering and management institutions, and IPO grading.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%E2%97%8F_Acer_credit_rating_CredStone_rating\"><\/span>\u25cf&nbsp;<strong>Acer credit rating &amp; CredStone rating<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Both are the newest entrants. Acer was incorporated in January 2024 and received its SEBI registration in August 2025. CredStone was incorporated in November 2020 and received its SEBI registration in May 2026.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Functions_of_credit_rating_agencies\"><\/span><strong>Functions of credit rating agencies<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Credit rating agencies in India perform various functions that keep the debt market running:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Assess creditworthiness: <\/strong>Evaluate the ability of a company or instrument to repay debt on time<\/li>\n\n\n\n<li><strong>Assign standardised grades: <\/strong>Express risk as a simple symbol that any investor can easily understand<\/li>\n\n\n\n<li><strong>Enable risk-based pricing: <\/strong>Higher-rated borrowers get loans at lower interest rates; lower-rated ones pay more<\/li>\n\n\n\n<li><strong>Gate-keep debt issuance: <\/strong>No public debt can be issued in India without a rating from a SEBI-registered credit rating company<\/li>\n\n\n\n<li><strong>Serve regulators: <\/strong>RBI, IRDAI, and PFRDA use CRA ratings to set investment limits for banks, insurers, and pension funds<\/li>\n\n\n\n<li><strong>Monitor continuously:<\/strong> Ratings are reviewed throughout the life of an instrument and upgraded, downgraded, or reaffirmed as conditions change<\/li>\n\n\n\n<li><strong>Promote transparency:<\/strong> CRAs disclose their rating methodologies, processes, and guidelines on their websites and annual reports, keeping the assessment process open to scrutiny<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">While these assessments focus on companies and debt instruments, individual lending works differently. For example, a <a href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/no-credit-check-loan\/\"><strong>no credit check loan<\/strong><\/a> may rely more on a borrower&#8217;s income and repayment capacity than on a traditional credit bureau enquiry, even though appropriate identity and affordability checks are still carried out.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_the_credit_rating_process_works\"><\/span><strong>How the credit rating process works<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Here is how credit rating agencies assign a rating, step by step:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Mandate and agreement:<\/strong> The issuer signs a written agreement with the CRA and pays the rating fee before assessment begins.<\/li>\n\n\n\n<li><strong>Information submission:<\/strong> The issuer submits financial statements, business plans, sector data, and details of the specific instrument to be rated.<\/li>\n\n\n\n<li><strong>Analyst review:<\/strong> Analysts conduct a detailed quantitative and qualitative assessment covering business risk, financial risk, management quality, and industry dynamics.<\/li>\n\n\n\n<li><strong>Rating committee decision: <\/strong>An independent rating committee reviews the findings and assigns the final grade.<\/li>\n\n\n\n<li><strong>Communication to issuer:<\/strong> The rating is communicated to the issuer first; if the issuer does not accept it, they may seek a review under SEBI regulations.<\/li>\n\n\n\n<li><strong>Publication:<\/strong> Once accepted, the rating is published on the agency website and disclosed in the bond offer document.<\/li>\n\n\n\n<li><strong>Ongoing surveillance:<\/strong> Ratings are continuously monitored and revised as the financials of the issuer or market conditions change.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_regulates_credit_rating_agencies_in_India\"><\/span><strong>Who regulates credit rating agencies in India?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">In India, credit rating agencies are primarily regulated by the Securities and Exchange Board of India (SEBI). The regulatory framework was first established through the SEBI (Credit Rating Agencies) Regulations, 1999, which provides for a disclosure-based regime. Under this regime, agencies are required to disclose their rating criteria, methodology, default recognition policy, and guidelines on dealing with conflicts of interest.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Similar transparency is expected in consumer lending, where a <a href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/personal-loan-agreement\/\"><strong>personal loan agreement<\/strong><\/a> should clearly disclose the interest rate, applicable charges, repayment terms, and borrower obligations before the loan is accepted.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_credit_ratings_matter_for_investors_borrowers\"><\/span><strong>Why credit ratings matter for investors &amp; borrowers<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Credit ratings are not just for analysts; they have real consequences for investors and borrowers alike:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"For_investors\"><\/span><strong>For investors:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Quickly assess how risky a debt instrument is without reading lengthy financial reports<\/li>\n\n\n\n<li>Use ratings as a compliance filter; mutual funds and insurers cannot invest below a certain rating threshold<\/li>\n\n\n\n<li>Spot early financial stress in a company through downgrades or rating watch alerts<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"For_borrowers\"><\/span><strong>For borrowers:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Lowers the interest rate at which a company can raise debt; a AAA-rated company pays significantly less interest than a BBB-rated one<\/li>\n\n\n\n<li>Rated companies have access to a wider pool of institutional investors, pension funds, insurance companies, and mutual funds<\/li>\n\n\n\n<li>A strong rating builds market credibility and speeds up future fundraising<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The logic that credit rating agencies use to evaluate companies is the same logic that individual lenders apply to borrowers like you. Financial discipline, repayment history, and debt levels all matter. Understanding this framework puts you in a stronger position every time you apply for credit. So before your next financial move, know where you stand. Check your eligibility for an instant personal loan with FatakPay in minutes and move forward with confidence.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><strong>FAQs\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q_How_many_credit_rating_agencies_are_there_in_India\"><\/span><strong>Q. How many credit rating agencies are there in India?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">There are nine credit rating agencies in India recognised by SEBI as of June 2026. This count increased over the years, from six agencies to nine, with Acer Credit Rating receiving registration in 2025 and CredStone Ratings in 2026.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q_Which_is_the_top_credit_rating_agency_in_India\"><\/span><strong>Q. Which is the top credit rating agency in India?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">CRISIL Ratings is considered the top credit rating agency in India by market share and historical precedence. However, ICRA and CARE Ratings are equally recognised across most debt instruments. Institutional investors and regulators treat ratings from all SEBI-registered credit rating companies as equally valid.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q_What_is_the_difference_between_a_credit_rating_and_a_credit_score\"><\/span><strong>Q. What is the difference between a credit rating and a credit score?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A credit rating evaluates whether a company or government can repay its debt obligations, expressed as a letter grade like AAA or BB. A credit score evaluates whether an individual can repay a personal loan or credit card, expressed as a number between 300 and 900.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q_Who_regulates_credit_rating_agencies_in_India\"><\/span><strong>Q. Who regulates credit rating agencies in India?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Credit rating agencies in India are primarily regulated by SEBI under the SEBI (Credit Rating Agencies) Regulations, 1999. SEBI governs their registration, rating operations, disclosures, and compliance requirements. Sector regulators such as RBI, IRDAI, and PFRDA also play a role in specifying which CRA ratings their regulated entities can rely on.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q_What_does_a_AAA_rating_mean\"><\/span><strong>Q. What does a AAA rating mean?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">AAA is the highest credit rating a SEBI-registered agency can assign. It indicates that the rated instrument carries the lowest possible risk of default and that the issuer has an exceptional ability to meet its financial obligations on time.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q_How_do_credit_rating_agencies_make_money\"><\/span><strong>Q. How do credit rating agencies make money?&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Credit rating agencies in India make money mainly through fees charged to issuers for rating their debt instruments. This is known as the issuer-pays model. In addition, CRAs charge annual surveillance fees to monitor ratings already assigned.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a id=\"_msocom_1\"><\/a><\/p>\n\n\n\n<script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\/\",\n  \"@type\": \"BreadcrumbList\",\n  \"itemListElement\": [\n    {\n      \"@type\": \"ListItem\",\n      \"position\": 1,\n      \"name\": \"Home\",\n      \"item\": \"https:\/\/www.fatakpay.com\"\n    },\n    {\n      \"@type\": \"ListItem\",\n      \"position\": 2,\n      \"name\": \"Blog\",\n      \"item\": \"https:\/\/www.fatakpay.com\/blog\/\"\n    },\n    {\n      \"@type\": \"ListItem\",\n      \"position\": 3,\n      \"name\": \"Credit Score\",\n      \"item\": \"https:\/\/www.fatakpay.com\/blog\/credit-score\/\"\n    },\n    {\n      \"@type\": \"ListItem\",\n      \"position\": 4,\n      \"name\": \"Credit Rating Agencies in India\",\n      \"item\": \"https:\/\/www.fatakpay.com\/blog\/credit-score\/credit-rating-agencies-in-india\/\"\n    }\n  ]\n}\n<\/script>\n\n\n\n<script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"BlogPosting\",\n  \"mainEntityOfPage\": {\n    \"@type\": \"WebPage\",\n    \"@id\": \"https:\/\/www.fatakpay.com\/blog\/credit-score\/credit-rating-agencies-in-india\/\"\n  },\n  \"headline\": \"List of Credit Rating Agencies in India | FatakPay\",\n  \"description\": \"Explore the full list of credit rating agencies in India, how CRISIL, ICRA and CARE assign AAA-to-D grades, and why SEBI regulates their ratings closely.\",\n  \"image\": \"https:\/\/www.fatakpay.com\/navbar-assest\/Logo-2.png\",\n  \"author\": {\n    \"@type\": \"Organization\",\n    \"name\": \"FatakPay\",\n    \"url\": \"https:\/\/www.fatakpay.com\"\n  },\n  \"publisher\": {\n    \"@type\": \"Organization\",\n    \"name\": \"FatakPay\",\n    \"logo\": {\n      \"@type\": \"ImageObject\",\n      \"url\": \"https:\/\/www.fatakpay.com\/navbar-assest\/Logo-2.png\"\n    }\n  },\n  \"datePublished\": \"2026-07-08\",\n  \"dateModified\": \"2026-07-08\"\n}\n<\/script>\n\n\n\n<script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [\n    {\n      \"@type\": \"Question\",\n      \"name\": \"How many credit rating agencies are there in India?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"There are nine credit rating agencies in India recognised by SEBI as of June 2026. 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Institutional investors and regulators treat ratings from all SEBI-registered credit rating companies as equally valid.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"What is the difference between a credit rating and a credit score?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"A credit rating evaluates whether a company or government can repay its debt obligations, expressed as a letter grade like AAA or BB. A credit score evaluates whether an individual can repay a personal loan or credit card, expressed as a number between 300 and 900.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Who regulates credit rating agencies in India?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"Credit rating agencies in India are primarily regulated by SEBI under the SEBI (Credit Rating Agencies) Regulations, 1999. 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This is known as the issuer-pays model. In addition, CRAs charge annual surveillance fees to monitor ratings already assigned.\"\n      }\n    }\n  ]\n}\n<\/script>\n","protected":false},"excerpt":{"rendered":"<p>When you apply for a loan, lenders do not just take your word for it. They look at ratings assigned by credit rating agencies. Credit rating agencies in India assess the ability of borrowers to repay debt, assigning grades that range from AAA to D. These agencies evaluate the financial strength of companies and debt<\/p>\n","protected":false},"author":1,"featured_media":10303,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[164],"tags":[],"class_list":["post-10277","post","type-post","status-publish","format-standard","has-post-thumbnail","category-credit-score"],"_links":{"self":[{"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/posts\/10277","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/comments?post=10277"}],"version-history":[{"count":2,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/posts\/10277\/revisions"}],"predecessor-version":[{"id":10280,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/posts\/10277\/revisions\/10280"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/media\/10303"}],"wp:attachment":[{"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/media?parent=10277"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/categories?post=10277"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/tags?post=10277"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}