S&P Global Ratings Singapore PTE Ltd has become the biggest foreign credit rating agency to set up a base in GIFT City in Gujarat. The entity was recently granted permission for conducting operations by the International Financial Services Authority (IFSCA).

“We have cleared the application of S&P Global. It is a big move for GIFT City. We welcome more entries, robust participation and competition,” said K Rajaram, chairperson, IFSCA, the unified regulator at GIFT City. The company is expected to initially start operations with a workforce of five persons in GIFT IFSC.

S&P Global follows in the footsteps of its Indian counterpart, CareEdge Global IFSC Ltd --- a subsidiary of CARE Ratings Ltd --- in establishing a base in this financial enclave. In October 2024, CareEdge became the first credit rating agency to establish a base in GIFT City. It also unveiled its first Sovereign Ratings of Global Economies that assigned ratings to 39 countries including India which received a BBB+ rating. An email send to S&P Global in connection with this development remained unanswered.

Credit Rating Agencies play a crucial role in global financial markets by providing independent assessments of creditworthiness of various entities, including sovereigns, corporations and financial instruments. In July 2024, Securities and Exchange Board of India (SEBI) had issued a circular empowering credit rating agencies to undertake credit rating activities under IFSCA, said officials.

In GIFT City, credit rating agencies can play a critical role in listing of debt by assigning credit rating to companies seeking to raise capital. Similarly, when Indian companies get listed on the stock exchanges in GIFT IFSC, the rating agencies can provide credit rating for IPOs. These entities can also assign ratings for trade finance instruments like letters of credit or to certificates of deposit issued by banks operating within GIFT IFSC.

Published on June 11, 2025