Credit Rating Agency (CRISIL, ICRA)

Credit Rating Agencies (CRAs) are independent organisations that assess and assign credit ratings to debt instruments such as bonds, debentures, and commercial paper and to the issuers of those instruments, reflecting the probability of timely repayment of principal and interest. In India, the major CRAs are CRISIL (a subsidiary of S&P Global), ICRA (affiliated with Moody's), CARE Ratings, and India Ratings (a Fitch Group company). Ratings range from AAA (highest safety) to D (default). Higher-rated instruments command lower yields (investors accept less return for less risk), while lower-rated or unrated instruments must offer higher yields to attract buyers. SEBI mandates credit ratings for public debt issues and regulates the conduct of CRAs in India.