The credit rating system in India is an essential factor that plays a crucial role in determining the creditworthiness of an individual or a business entity.
Credit rating companies assign ratings to entities after evaluating their financial and business risk. These ratings are based on a variety of factors, including the borrower’s credit history, payment history, outstanding debt, and other financial indicators.
The credit rating system in India helps investors make informed investment decisions by providing them with information on the creditworthiness of debt securities.
There are several credit rating agencies in India, including CRISIL, ICRA, CARE, India Rating and Research Private Limited, and others.
These agencies are authorized and regulated by the Securities and Exchange Board of India (SEBI).