Credit Analysis & Research Ltd. (CARE) is a full service rating company that offers a wide range of rating and grading services across sectors. CARE has an unparallel depth of expertise. CARE Ratings methodologies are in line with the best international practices.

CARE Ratings has completed over 3656 rating assignments having aggregate value of about Rs 7141 billion (as at September 2007), since its inception in April 1993. CARE is recognised by Securities and Exchange Board of India (Sebi), Government of India (GoI) and Reserve Bank of India (RBI) etc.

CARE was promoted by major Banks/FIs (financial institutions) in India. The three largest shareholders of CARE are IDBI Bank, Canara Bank and State Bank of India. CARE, is set-up with two divisions:

CARE Ratings:

The ratings division of CARE has over a decade long experience in rating debt instruments/Enterprise ratings covering the full spectrum of Universe comprising:

• Industrial Companies
• Service companies
• Infrastructure companies
• Banks
• Financial Institutions (FIs)
• Non-Bank Finance companies(NBFCs)
• Public Sector Undertakings (PSUs)
• State Government Undertakings
• Municipal Corporations
• Structured Finance Transactions
• Securitization Transactions
• SMEs
• SSI
• Micro Finance Institutions

In addition to debt ratings CARE Ratings has experience in providing the following specialized grading/rating services:

• Corporate Governance ratings
• IPO grading
• Mutual Fund Credit quality Ratings
• Insurance Claims Paying Ability Ratings
• Issuer Ratings
• Grading of Construction entities
• Grading of Maritime training institutes
• LPG/SKO Ratings

CARE Ratings is well equipped to rate all types of debt instruments like Commercial paper, Fixed Deposit, Bonds, Debentures, Hybrid instruments, Structured Obligations, Preference Shares, Loans, Asset Backed Securities(ABS), Residential Mortgage Backed securities(RMBS) etc.

CARE Ratings has been recognized by statutory authorities and other agencies in India for rating services. The authorities/agencies include: Securities and Exchange Board of India (Sebi), Reserve Bank of India (RBI), Director General, Shipping and Ministry of Petroleum and Natural Gas (MoPNG), Government of India (GoI), National Housing Bank (NHB), National Bank for Agriculture and Rural development (NABARD), National Small Scale Industries Commission (NSIC). CARE Ratings has also been recognized by RBI as an Eligible Credit Rating Agency (ECRA) for Basel II implementation in India.

CARE Ratings has significant presence in all sectors including Banks / FIs, Corporate, Public finance. Coverage of CARE Ratings has extended to more than 1075 entities over the past decade and is widely accepted by investors, issuers and other market participants. CARE Ratings have evolved into a valuable tool for credit risk assessment for institutional and other investors, and over the years CARE has increasingly become a preferred rating agency.

CARE‘s Credit Rating is an opinion on the relative ability and willingness of an issuer to make timely payments on specific debt or related obligations over the life of the instrument. CARE rates rupee denominated debt of Indian companies and Indian subsidiaries of multinational companies. CARE ratings are not recommendations to buy/sell or hold any security.

CARE Research :

The Research and Information division of CARE provides contemporary research and information covering various industries and financial markets. Publications include Industry Research Reports with Updates, Debt Market Review, Budget Analysis, other policy impact analysis, and special commentaries on topical issues.

CARE Research offers both subscription based reports and also customised reports on request. The division has an established network of primary and secondary sources, which enable the analyst to form unbiased opinion on the industry segments. It has also developed different methodologies for forecasting the future demand-supply situation in a particular industry.

• CARE has over a decade of experience and track record of rating various types of debt instruments covering varied sectors. CARE has all along built its rating methodologies in congruence with international best practices in the sector. CARE constantly tracks international developments in rating analytics and research and incorporates the latest tools and techniques of analysis in its methodologies. As a founder member of ACRAA, CARE is regularly in dialogue with international rating agencies to understand the latest developments in the field of ratings. CARE analysts regularly attend international training conferences on ratings / research to assimilate and incorporate the best practices in our ratings.
  CARE ratings are followed by a large number of domestic and international investors. This gives us an opportunity for dialogue with users of ratings and, based on their feedback, we constantly strive towards analytical excellence.  

People Strength

• CARE is a Board managed independent and professional company. CARE’s Board consists of professionals with experience in industry, capital markets and Government.
• CARE analysts are pre-dominantly post-graduate professionals such as MBAs with engineering background, finance professionals with engineering / economics background, chartered accountants, economists and chartered financial analysts.
• The business development team reaches out to the corporate world to explore new business opportunities in the realm of rating.

Rating Process

• The rating assigned is communicated to the client along with a detailed rationale.
• The ratings accepted by the clients are published and then monitored on a continuous basis over the life of the instrument.
• CARE has a comprehensive in-house data base which facilitates surveillance of the various industries and companies operating in these industries.
• Each rating is reviewed formally at least once a year, when analysts meet the issuer’s management.
• A review can also be triggered by a major development in the company or in the industry, which may have a significant bearing on the credit-worthiness of the company.
• As a part of the review exercise, actual financial performance is analysed in the light of the estimates made earlier and deviations are examined.
• CARE puts the rating under Credit Watch, when any event or deviation from the expected trend has occurred or is expected and additional information is necessary to take rating action.
• The rating may be retained, upgraded or downgraded based on the changed prospects for the issuer. A rating change is at the absolute discretion of CARE, without concurrence of the client.

Source : CARE Website