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Acuité Ratings and Research and CARE Ratings join hands to set up the Association of Indian Rating Agencies (AIRA) that aims to represent domestic rating agencies.
“To continue to push the agenda of enhancing rating standards and help build trust with investors and issuers, a few rating agencies have come together to form an industry association,” said a statement on Tuesday.
AIRA has been incorporated as a Section 8 (not-for-profit) company and is expected to work closely with the regulator and government for the development of the debt market.
Also read: About 50% of rated entities are ‘issuer non-cooperating’
“The rating industry, in active engagement with and facilitation by SEBI, has taken several steps to enhance the standards of credit ratings in the country,” it further noted.
While Acuité Ratings and Research and CARE Ratings are the founding members of the association, all rating agencies are invited to be a part of the association.
Other members
The process of inducting two more rating agencies is currently underway and expected to get completed soon.
AIRA has also written to the other three rating agencies welcoming them to join the association as shareholders-cum-members.
At present, there are seven credit ratings agencies registered with SEBI that cumulatively have ratings coverage on over 57,000 entities.
Ajay Mahajan, Managing Director and CEO, CARE Ratings said, “Through this association, we aim to engage extensively and constructively with all stakeholders, including the regulators and policy makers, for the orderly development of the debt market with the increased usage of credit rating.”
Sankar Chakraborti, Group CEO and Executive Director, Acuité Ratings & Research said the association will work with all stakeholders to enhance availability and flow of information needed for ratings and create awareness of best practices adopted by the industry.
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