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CRISIL today reached a landmark by assigning the 10,000th bank loan facility rating. Barely four years ago, CRISIL’s ratings covered only 410 firms, notes a press release from the rating agency.
The 10,000th company rated by CRISIL was the Sequoia Capital-funded Celon Organics Pvt Ltd, a Hyderabad-based pharma company.
The rapid expansion of bank loan ratings (BLR) to the tune of 38,000 accounts with sanctioned limits of about Rs 1,60,000 crore “has strengthened the overall credit culture in India on a systemic basis,” the release says.
The availability of such credible analysis is helping lenders and investors take informed decisions, it says.
CRISIL’s Managing Director, Ms Roopa Kudva, notes in the release that the agency has conducted over 1,100 seminars in the past four years, covering some 30,000 borrowers, bankers and other market intermediaries, in order to educate the market and spread awareness about the benefits of ratings.
It is not just the big companies that have been rated. About 70 per cent of rated companies have a turnover of Rs 100 crore or less and are based in 200 Tier II and Tier III towns. About 1,300 enterprises have returned for additional ratings for loans worth Rs 3,40,000 crore. “The fact that 130 basmati rice processing firms and 56 ship-breaking companies are rated by CRISIL is a good illustration of the penetration of BLR among a range of smaller companies across industries,” says Ms Kudva.
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