Rating agencies come together to represent Indian rating industry

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The country’s rating agencies have come together to form an association to advance the agenda to improve rating standards and help build trust with investors and issuers.

As a result, Acuite Ratings & Research Limited and CARE Ratings Limited founded the “Indian Rating Agencies Association or AIRA” which was incorporated as an Article 8 (non-profit) corporation. The AIRA should also work closely with the regulator and the government for the development of the debt market.

Currently, seven credit rating agencies are registered with SEBI and aggregate the ratings of more than 57,000 entities. However, all this while there was no association to collectively represent an industry that has existed for over three decades in India.

“Ratings have become essential for informed decision-making in the financial world. Through this association, we aim to engage deeply and constructively with all stakeholders, including regulators and policymakers, for the development order of the debt market with the increased use of credit rating,” said Ajay Mahajan, Managing Director and CEO of CARE Ratings Limited.

Although Acuite Ratings & Research Limited and CARE Ratings Limited are founding members of the association, all rating agencies have invited to join the association.

Current members have already begun the process of inducting two other rating agencies and hope to complete the process soon. The AIRA has also written to the three other rating agencies inviting them to join the association as shareholders-cum-members.

Sankar Chakraborti, Group CEO and Executive Director of Acuite Ratings & Research Limited, said: “The Association will work with all stakeholders to improve the availability and flow of information needed for ratings and to raise awareness of best practices adopted by industry. We believe that AIRA will act as a bridge between all stakeholders.”

–IANS

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(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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