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hiiiiiiiii guys plz help me regarding the project of 200 marks on credit rating agencies in india
From India , Thana
Hi Smruti,
Small information on Credit Rating Agencies in India..
Couple of agencies like CRISIL and Dun & Bradstreet do the credit appraisal of business entities in India..
These rating agencies do rate the business entities based upon some specified criteria like:
1) Basic Constitution
2) Industry i.e., Software, Cement, Steel, Food Processing etc.,
3) Profitability
4) Dividend Distribution
5) Repayment of Term Loan
6) Specific Statutory Registrations etc.,
The above are only few criteria, like this every industry will have certain success key criteria..
For more information you visit and explore the information from and D&B - Dun & Bradstreet - D&B India - Dun & Bradstreet India - Global Risk, Credit, Sales, Marketing, and Supplier Management Solutions
All the best..
Research and exploration preserves the knowledge for life time..
Thanks & Regards
Shiva Prasad N

From India , Hyderabad
All lending institutions are actually credit rating agency. They do credit assesment for their clients/borrowers.

A credit rating agency is specialised in gettting informaiton. Theu do it on the reqeust of a lending institution for any particular entity.

It is like outsoucing agency specialised in credit informaiton.

For example if you go to HDFC or any bank for housing loan they collect your personal and financial informaiton and share with these agencies. They in turn would certify the authenticity and if required supplement the report in their own.

But this is not the only job these agency would do.

If you wish to export to a buyer say in USA you would like to learn about them. You would turn to these credit information agency for their report on the buyer. This report invariably contain informaiton on incorporation, affress, owneres and promotors, financial health, legal issues etc plus they would also give their assesment of limit for credit.

There are innumerous agencies in India and abroad.

Various agencies are based in different countries. For example MIRA INFORM, Canadian information agency, HERMES etc.

There are other agencies who provide credit information of the units as their side business. These are normally registrar of comapnies of various countries.

If you wish to have more information you can contact me


Kumar Anshuman

From India , Jalandhar
Both Shiva and Anshuman and stated the two type of agencies involved in credit rating in India.

Crisil and care mostly strict to well know companies and have very structured reports. Dan & Bradstreet are more flexible and have wider reach but5 are expensive too.

It may be better to get a clear idea of the objective for which these ratings are done. If these structured reports are good enough, then wonderful.

It is surely a good idea to use specialist agencies as mentioned by Anshuman. Here too, you should specifically insist on a check list by such agencies which, besides the usual information, includes:
- Neighborhood check - what neighbors tell you about your subject
- Customer check - what are main customers' opinion about the subject
- Supplier check - what are main suppliers' opinion about the subject
- Employee check - what do the employees' say about the subject
- Informal bank check - if possible

These agencies should performance at least two of the above check.

But my experience had been that we should not normally believe their report. We should counter check them though own sources like the ROC, reference check with the bank, request for references, news portals etc., their own payment track record, correspondences or any symptom that arouses suspicion.

Please understand the risk is ours (our employers) so a counter check can not be over emphasized.

This is also important as the margins are very low say a percent or 2 or a fraction of a percent in many cases but if the subject fails to pay then we loose also the entire amount. In other words, failure to recover from one customer may wipe out the gains from 100 customers (extremely adverse risk to reward ratio).

Also, such rating should be also be carried out for the critical and important supplier as their failure can disrupt the production plan leading to failure on deliveries or commitments, disrepute and loss of goodwill.

Without a doubt, Credit rating should get due importance in every organisation.


From India , Pune
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