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ICRA Limited

Overview

ICRA Limited is an Indian credit rating agency headquartered in Gurugram, Haryana. Originally established as the Investment Information and Credit Rating Agency of India Limited, it provides credit ratings, research, and risk and financial sector advisory services to issuers, investors, banks, and intermediaries in India. ICRA is a publicly listed company on the Bombay Stock Exchange and the National Stock Exchange of India, and it is an associate of the global rating agency Moody's.

Key facts

Name ICRA Limited
Former name Investment Information and Credit Rating Agency of India Limited
Founded 1991
Industry Credit rating, financial research, advisory
Headquarters Gurugram, Haryana, India
Parent / major shareholder Moody's Corporation (through affiliates)
Listings BSE, NSE
Country India

Background

ICRA was set up as part of a broader effort in the early 1990s to develop independent credit assessment in Indian capital markets, alongside other rating agencies of the period. It was promoted by leading Indian financial institutions, banks, and insurance companies to provide objective opinions on the credit quality of debt instruments. Over time, the company expanded beyond ratings into research, analytics, knowledge services, and outsourced financial sector advisory through subsidiaries.

History and timeline

  • 1991: Incorporated as Investment Information and Credit Rating Agency of India Limited, with promotion by Indian financial institutions.
  • 1990s: Began assigning credit ratings to long-term and short-term debt instruments issued by Indian corporates, banks, and financial institutions.
  • 2007: Listed on Indian stock exchanges through an initial public offering.
  • Subsequent years: Moody's progressively increased its shareholding, becoming the majority shareholder and making ICRA part of the Moody's group of rating affiliates.
  • Later expansion: Diversified into specialised offerings, including ratings for structured finance, infrastructure, mutual funds, insurance companies, and small and medium enterprises, and built advisory and analytics capabilities through subsidiaries.

Operations and services

ICRA's services are organised broadly across the following areas:

  • Credit ratings: Ratings for debentures, bonds, commercial paper, fixed deposits, bank loan facilities, structured finance instruments, and issuer ratings.
  • Sector and economic research: Industry reports, sectoral outlooks, and macroeconomic commentary used by investors and policymakers.
  • Specialised gradings: Including gradings for initial public offerings, mutual funds, insurance companies, real estate developers, healthcare entities, and educational institutions.
  • Advisory and analytics: Risk management, financial sector consulting, and knowledge process services delivered through subsidiaries.

Regulatory status

ICRA is registered with the Securities and Exchange Board of India as a credit rating agency and is recognised by the Reserve Bank of India as an external credit assessment institution for the purposes of bank capital adequacy norms under the Basel framework. Its ratings are used by regulators, banks, and institutional investors in India for risk-based decision making.

Significance

ICRA is one of the principal credit rating agencies operating in India, alongside CRISIL and CARE Ratings. Its ratings and research influence the pricing and placement of corporate debt, the regulatory treatment of bank exposures, and investment decisions by mutual funds, insurance companies, and pension funds. Through its association with Moody's, the agency also serves as a link between Indian credit markets and global rating methodologies.

References

  • Wikidata: Q5969711
  • Securities and Exchange Board of India, list of registered credit rating agencies.
  • Reserve Bank of India, notifications on accredited external credit assessment institutions.