The Hindu Business Line : ICRA signs MoU with Bulgarian agency

MARKING the entry of the first Indian credit rating agency into the European market, ICRA Ltd has signed a memorandum of understanding (MoU) with the Bulgarian Credit Rating Agency (BCRA).

As per the MoU, according to an ICRA statement here, the Indian rating agency will provide technical assistance to BCRA in designing rating methodologies, besides imparting training to its analysts, and help them in carrying out rating assignments.

Commenting on the development, ICRA's Managing Director, Mr P.K. Choudhury, said: "The entry into Bulgaria underscores ICRA's initiatives towards lending its proven expertise to rating entities beyond India. The MoU with BCRA is important not only because it marks our entry into Europe, but also because it highlights the growing international acceptance of the expertise that our country has built up in the area of credit rating within a relatively short span of 14 years or so."

For BCRA, the MoU with ICRA is a critical step in the direction of institutionalising the system of credit rating in Bulgaria. Said Ms Sonya Sofronova, Executive Director, BCRA: "We propose to use ICRA's expertise in establishing a firm base for the system of credit rating in our country. Through credit rating, we want to assist Bulgarian companies find new opportunities of financing and market expansion."

Besides, BCRA has set for itself the target of becoming "a leader in providing correct and unbiased assessment of Bulgarian companies' creditworthiness", and the MoU with ICRA is a move towards this goal, she said.

For ICRA, the MoU marks yet another step by the Indian agency beyond national borders. Already, it has helped in the establishment of a credit rating agency in Kuwait and also signed an MoU in another country in West Asia.