The full form of ICRA is Investment Information and Credit Rating Agency of India Limited. It was formerly known as the Investment Information and Credit Rating Agency.
It was established in 1991 by leading financial institutions, commercial banks, and financial services companies. They have an alliance with Moody’s Investors Service, which is an international credit rating agency. They are one of the largest shareholders in ICRA. The aim of this alliance is to enrich ICRA’s in-house research capabilities. Moody’s provides ICRA access to its global research base.
ICRA Ltd. trades on the Bombay Stock Exchange (BSE) as well as on the National Stock Exchange (NSE).
Services by ICRA Ltd. :
ICRA’s credit ratings enable investors to make informed investment decisions. Credit rating helps investors in selecting the most suitable investment options.
Recommended Read: Understanding Credit Rating and the Agencies in IndiaICRA gives credit rating to rupee-denominated debt instruments issued by –
Manufacturing companies
Commercial banks
Non-Banking Finance Companies
Financial Institutions
Public Sector Undertakings
Municipalities
Other services offered by ICRA include –
Corporate Governance
Rating Stakeholder Value and Governance Rating
Credit Risk Rating of Debt Mutual Funds
Rating of Claims Paying Ability of Insurance Companies
Project Finance Rating
Line of Credit Rating
ICRA provides information to institutional and individual investors. They also assist the regulators in promoting transparency in the financial markets.
Brief History of ICRA Ltd.:January 1991
ICRA Ltd was incorporated and launched its Credit Rating Service.
1993
The company launched an independent and professional investment information service.
1995
They launched the services of Credit Assessment for small and medium scale industries.
1996
They signed an agreement with a credit rating agency Moody for risk management services.
1998
ICRA introduced a Rating Methodology for the Claims Paying Ability of General Insurance companies in India.
1999
The company became the first Indian credit rating agency to rate all non-life insurance companies.
2003
ICRA launched Project Finance Assessment Rating Service. The company entered into a shareholder and subscription agreement with IndiaCapital.
2004
They launched the services of grading of mutual fund management quality.
Recommended Read: RankMF Mutual Fund Baskets – Best Option for your Financial Goals2006
ICRA demerged their consulting division and transferred to ICRA Management Consulting Services Ltd.
They acquired ICRA Online Ltd and Computer Exchange Pvt Ltd. It was later renamed as ICRA Techno Analytics Ltd.
ICRA’s Credit Rating Scale :
Instruments with [ICRA]AAA rating are considered to have the highest degree of safety. This is with respect to the borrower’s timely financial obligations. Such instruments carry the lowest credit risk.
ICRA’s Long-Term Rating Scale
ICRA’s Medium-Term Rating Scale (only for Public Deposits)
ICRA’s Short-Term Rating Scale
ICRA’s Issuer Rating Scale
ICRA’s Rating Scale for Instruments supported by Explicit Credit Enhancement
Structured Finance Rating
ICRA Mutual Fund Credit Risk Ratings Scale & Definitions
Special Symbols
Liquidity Indicators Definitions
Expected Loss Rating Scale
For the rating categories [ICRA]AA through to [ICRA]C, the modifiers + (plus) or – (minus) may be added to the rating symbols. This indicates their relative position within the rating categories concerned.
For example, the rating of [ICRA]AA+ is one notch higher than [ICRA]AA. Whereas, [ICRA]AA- is one notch lower than [ICRA]AA.
Key Personnel :
Mr. N. Sivaraman – Managing Director & Group CEO of ICRA
Ms. Ranjana Agarwal – Independent Director of ICRA
Ms. Radhika V Haribhakti – Independent Director of ICRA
Mr. Arun Duggal – Non-Executive Chairman and an Independent Director of ICRA
Mr. Ramnath Krishnan – President-Ratings & Chief Rating Officer
Mr. Vipul Agarwal – Group Chief Financial Officer
Subsidiaries :
ICRA Analytics Limited
ICRA Lanka Limited
ICRA Nepal Limited
ICRA Management Consulting Service
PT ICRA Indonesia
ICRA Employees Welfare Trust
Listing and Shareholding at ICRA :
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Promoters
50.55
51.87
51.87
51.87
FIIs
10.73
9.11
10.03
9.76
DIIs
28.31
28.59
29.91
29.3
Public
10
10.11
7.87
8.74
Others
0.41
0.33
0.33
0.33
A larger promoter stake is a positive sign. It indicates that the promoters believe in the company’s future growth. Nearly 52% of shares are still held by the promoters of ICRA. This shows promoter’s confidence in ICRA’s future. This also reflects in the stability of its share prices.
Let’s have a look at ICRA Ltd.’s latest finances.
Financial Overview(Figures in Rs. Crores) :
Samco’s Ratings for ICRA Ltd. :
ICRA’s Share Page: 4 out of 5 stars (Stock Rating Date: 17th Aug 2021)
Check current rating of ICRA Share Price : https://www.samco.in/share-price/icra-ltd/ICRA/INE725G01011Valuation Analysis of ICRA Ltd. :From an investor’s perspective –
If the market price is significantly lower than the intrinsic value of the stock, the stock has a high margin of safety. It is a buy signal.
From a seller’s point of view –
If the market price is significantly higher than the intrinsic value, it a short sell opportunity. ICRA Ltd. enjoys a high margin of safety.
ICRA takes reasonable care while evaluating a company. However, it does not give a warranty or a guarantee of safety. ICRA ratings should not be considered as a recommendation to buy, sell, or deal in the rated instruments.
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To understand what is credit rating and how credit ratings work, watch the following video: