CARE undertakes rating exercise based on information provided by the company, in-house
database and data from other sources that CARE considers reliable.
+ Debt Ratings
+ Bank Loan
+ Issuer Ratings +
Corporate Governance Rating
+ Recovery Rating
Financial Sector Ratings
CARE’s ratings factor in the array of risks that have an effect on the Financial
Sector company viz business risks, legal risk, financial risks and management risks.
+ Credit Quality Rating
+ Capital Protection Oriented Scheme Ratings
+ Insurance + NBFCs
+ Housing Finance
Public Finance Ratings
CARE has comprehensive framework for the assessment of the credit quality of states
and local bodies.
+ Urban Local Bodies
CARE’s Project Finance Ratingis an independent opinion on the risks associated with
the project on a standalone basis and after considering the sponsor’s strength.
+ Project Finance
Infrastructure Sector Ratings
CARE’s Infrastructure Sector Rating encompasses the ratings assigned to debt programmes
of issuers in the power, roads, telecommunications and other such infrastructure-related
CARE's Valuation of PPMLD structures are opinions on the valuation of a given instrument based on CARE's analysis of the structure and the impact of underlying market variables affecting the structure on the given valuation date.
CARE’s SME Vertical
Value-added services for SMEs
+ Wide product offerings
+ Database of more than 6,000 SME entities
+ Quarterly publications for analytical inputs
+ Daily publication on news in SME sector
+ Operating from ten branches across India
+ MoU with leading banks for interest & rating fee concession
+ A team of qualified analyst
+ Click here to view Services in MSME Segment
Indian SMEs face growth constraints due to lack of adequate& timely finance and difficulty to establish credible relations with its stakeholders.
CARE’s SME vertical with its sound data base and analytical abilities offers the various products in this segment to bridge this gap.
+ NSIC-CARE Performance & Credit
Rating for MSEs + SME Ratings
+ SME Fundamental Grading
+ Bank Loan Ratings
+ Due Diligence Service
+ Channel Partner
EQUIGRADE is a flagship product under equity research and grading services offered
+ Read More
Real Estate Star Rating
CARE undertakes the Real Estate Star Rating exercise by implementing its plethora
of analytical expertise.
CARE EDU GRADE is a grading product for Educational Institutes.
CARE’s IPO grading is a service aimed at facilitating the assessment of equity issues
offered to public.
ITI Grading is a grading product for Industrial Training Institutes.
+ Read More
CARE's MFI grading is a one-time assessment of a Micro Finance Institution's (MFI)
operational and financial capability…
CARE’s Rating of REIT fund is an opinion on the REIT’s investment quality, based on the fundamental assessment of the REIT.…
CARE has been empanelled by MNRE for carrying out the Accreditation/Grading exercise
for Renewable Energy Service Companies (RESCOs)…
The ESCOs specializes in energy audits and implement energy efficiency practices
in a particular organization…
+ Shipyard Grading
+ Construction Grading
+ Maritime Grading
Rating Symbols & Definition
+ Bank Loan Ratings
+ Corporate Governance Rating
+ Construction Grading
+ Corporate Governance Rating
Rating/Statistics – Regulatory Disclosure
+ Credit Rating History and Default
+ Structured Finance Product
+ Outstanding Rating
+ Brief Rationale
+ Complexity Level of Rated Instruments
+ FAQs on
+ Fee Structure
The Economics Department is known for its regular and almost real-time domestic
and global economy-related updates, opinions as well as analytical Studies and Surveys.
Analyses of developments in areas such as GDP, industrial growth, inflation, agricultural
growth, trade etc.
The reports in this section assess the impact of various policy measures by different
countries on India’s economy and so on.
Surveys that capture expectations of the key players in the industry; from various
fields like banking, automobile, entertainment, etc., on various economic developments.
In-depth analytical Studies to ascertain trends in various facets of the economy.
Debt Market Update
A free monthly bulletin about the happenings in the debt market.
+ Audited Financial Results
+ Unaudited Financial Results
+ Annual Reports
+ BSE Stock Watch + NSE Market Tracker
+ Registrar and Share Transfer
The rating process takes about two to three weeks, depending on the complexity of
the assignment and the flow of information from the client. Ratings are assigned
by the Rating Committee.
CARE undertakes a rating exercise based on information provided by the company,
in-house databases and data from other sources that CARE considers reliable. CARE
does not undertake unsolicited ratings.
Rating fees are computed separately on each instrument issued. Issuers are liable
to pay rating fees, regardless of whether they accept CARE's rating or not. Full
rating fee is to be paid up front.
Why CARE Ratings? Why is credit rating necessary at all? Why do rating agencies
use symbols like AAA, AA, rather than give marks or descriptive credit opinion?
+ View More
CARE Ratings commenced operations in April 1993 and over nearly two decades, it has established itself as the second-largest credit rating agency in India. With the rating volume of debt as Rs.78.93 lakh crore (as of March 31st, 2016), CARE Ratings is proud of its rightful place in the Indian capital market built around investor confidence. CARE Ratings has also emerged as the leading agency for covering many rating segments like that for banks, sub-sovereigns and IPO gradings.
CARE Ratings provides the entire spectrum of credit rating that helps the corporates to raise capital for their various requirements and assists the investors to form an informed investment decision based on the credit risk and their own risk-return expectations. Our rating and grading service offerings leverage our domain and analytical expertise backed by the methodologies congruent with the international best practices.
With majority shareholding by leading domestic banks and financial institutions in India, CARE’s intrinsic strengths have also attracted many other investors.
CARE’s registered office and head office, is located at 4th floor, Godrej Coliseum, Somaiya Hospital Road, Sion (East), Mumbai 400 022. In addition, CARE has regional offices at Ahmedabad, Bangalore, Chennai, Hyderabad, Jaipur, Kolkata, New Delhi, Pune,Coimbatore and international operation in Male in the Republic of Maldives.
To enhance its scope of business CARE Ratings has been nurturing global opportunities and made forays in different forms: launched a new international credit rating agency ‘ARC Ratings’ with 4 partners from Brazil, Portugal, Malaysia and South Africa and established a subsidiary CARE Ratings (Africa) Private Limited (CRAF) in Mauritius. There is also in place a MoU with Japan Credit Rating Agency Limited and another one to establish a credit rating agency in Nepal.
+ To offer a range of high-quality services to all the stakeholders in the capital market
+ To build a pre-eminent position for ourselves in India in securities analysis, research and information services and to be an international credit rating agency
Mr. S. B. Mainak is the Non - Executive Chairman of our Company. A qualified Chartered Accountant, he joined LIC as a Direct
Recruit Officer in 1983 and retired as its Managing Director with effect from 1st March, 2016. During his long tenure at LIC,
he acquired wide range of experience in several functions spanning Investments, Finance & Accounts and Marketing and held
various positions including Senior / Branch Manager, Divisional Manager of Pension & Group Superannuation and in various
capacities in the Investment department. He also had a stint in academics as Professor (Life Insurance) and Head of Finance
Department in National Insurance Academy (NIA), Pune, where he was instrumental in creating new teaching programmes
in finance & accounts, investment, GAAP accounting and Insurance Investment and Financial Reporting Standards. He was
Deputy President of the Insurance Institute of India and member of the Governing Board of NIA. He was earlier appointed by
the Government of India on the Board of Satyam Computer Services Limited as an Independent Director for restructuring the
company. In 2009, he was conferred the ‘NDTV Profit Business Leadership Award’, ‘CNN-IBN Indian of the Year Award’ and
‘Dataquest IT Person of the Year Award’.
Mr. A. K. Bansal is an Independent Director of our Company. He worked as Executive Director of Indian Overseas Bank between 2010-13. Born on 22nd May 1953, Shri A. K. Bansal is a Post Graduate in Agriculture from the renowned G B Pant Agriculture University, Pant Nagar, Nainital and recipient of ICAR Junior Research Scholarship. He joined Union Bank of India as Agricultural Field Officer at the age of 23 years in the year 1976.
He has had a highly successful and rewarding career path at Union Bank during which he was awarded Super Achiever and Star Performer status, conferred with the Chairman Club Membership and was entrusted with some of the most challenging and coveted assignments of the Bank. He was also the driving force for setting up the Bank’s Capital Market Cell at Mumbai and establishing the Bank’s first museum at M S M branch in Mumbai.
At Indian Overseas Bank, among other portfolios, he had exclusive charge of Large Corporate, International, MSME, Planning, NPA management, Agriculture & Priority Credit, Inspection & Audit, Public Relations, Customer Service & Vigilance.
He has been conferred the “Indira Super Achiever Award” for the year 2010-11 by the Indira Group of Institutions, Pune in recognition of his high contribution value to the field of Banking and Finance during his banking career.
He is also on the Board of Directors of Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited.
Dr. Ashima Goyal is an Independent Director of our company. She is a B.A. (Honours) Economics from Delhi University and M.A. and M. Phil. from Delhi School of Economics, Delhi University, and Ph.D. from Bombay University. She has rich experience in the field of open economy macroeconomics, international finance, institutional and development economics, in which she is widely published. Her research has received national and international awards. She is editor of an OUP handbook on the Indian economy and a Routledge journal on Macroeconomics and Finance. She is a Professor at Indira Gandhi Institute of Development Research, member of the Monetary Policy Technical Advisory Committee of the RBI, Vice-Chairperson and a Public Interest Director at MCX-SX, has been a member of various committees of Reserve Bank, Government of India, Governing Council of the Exchange Traded Currency Derivatives Segment (ETCD) of the Bombay Stock Exchange Ltd., and Indian Merchants Chamber, and has served on the Boards of MCX, MCX-SX Clearing Corporation, and National Institute of Bank Management.
Mr. Milind Sarwate is an Independent Director of our company. He is the Founder & CEO of Increate Value Advisors LLP. His mission is to facilitate value creation, both business & social, using his experience of 33 years in Finance, HR and strategy in groups such as Marico & Godrej. He is an Independent Non-Executive Director in 7 companies, including Glenmark, Mindtree, Matrimony.com and House of Anita Dongre. He also plays advisory roles in several other organisations. Mr Sarwate is a Chartered Accountant, Cost Accountant & Company Secretary, a B. Com. (Honours) from the University of Mumbai, and a CII-Fulbright Fellow (Carnegie Mellon University, Pittsburgh, U S A.). He received the ICAI Award -CFO - FMCG category in 2011, and the CNBC TV-18 Best Performing CFO Award -FMCG & Retail in 2012. During 2013, the CFO India magazine inducted Milind to the CFO India Hall of Fame.
Rajesh Mokashi is the Managing Director and Chief Executive Officer of our Company. He holds a Bachelor's degree in Mechanical Engineering from VJTI, Mumbai and a Master of Management Studies degree from University of Bombay. He is a qualified Chartered Financial Analyst and has also cleared Level III of the CFA Program conducted by the CFA Institute, USA.
He has obtained a Diploma in Import and Export Management from Indian Institute of Materials Management. He has more than 30 years of experience in finance, commerce and credit risk sectors. He has been associated with OTIS Elevators Company (India) Limited, DSP Financial Consultants Limited and Kotak Mahindra Finance Limited in the past. He is on Board of Directors with CARE Kalypto Risk Technologies and Advisory Services Pvt. Ltd., He also Member-Empanellment Committee of NISM. He has been associated with our Company since 1993 and was appointed on the Board on August 22, 2009.
CARE’s management team is its biggest strength. Besides planning, decision making and matters of strategic importance, issues relating to development of people, etc are also taken care of by the management team. The team is instrumental in providing guidance and technical expertise thereby enabling constant improvisation in rating techniques and procedures. Under its guidance and value-added initiatives, the company has been growing consistently over the past decade, thus providing indispensable inputs to the investor community.
Capital Market, both primary and secondary segments, play a vital role in economic development because of its linkages with the banking systems and investment communities (including foreign capital flows). The vibrancy of capital market comes from its volume and varieties of trades of financial instruments, its liquidity and ability to raise capital by attracting fresh investments, which are derivatives of sound investor confidence and transparency. CARE is committed to play a key role by providing professional, insightful and independent informed opinion through various grading and rating services, which can serve as a valuable input to build investor confidence.
CARE’s credit rating for debt instruments (viz debentures, bonds, asset-backed securities etc) is a highly-valued credit risk opinion, which helps the investors to effectively monitor and manage investments based on their respective risk-return policies. On the other hand, it imparts the issuers with financial flexibility for wider access to funds at a market-determined cost related to their credit risk. It can also provide a helping hand for establishing business relationships (including collaborations) and awarding contracts to the counter parties.
CARE’s grading products viz IPO Grading and Equi-Grade have proved to be valuable means for primary and secondary market development respectively. IPO Grading, through its opinion on fundamentals, works as one of the important inputs to form long-term equity investment decision for public offerings. On the other hand, the investor community can have an unbiased and analytical opinion on the fundamentals and valuations of any listed entity through Equi-Grade product.
For the regulators, CARE’s rating services facilitate in determining the eligibility criteria and entry barriers for different types of securities, to monitor financial soundness of borrowers and to promote overall efficiency in the debt market. Our Equi-Grade product can also be useful to the stock exchanges for investor education and improve liquidity in the secondary market. Thus, services of CARE increase the transparency, leading to a healthy development of the capital market.
I. Code Of Conduct (Code Of Ethics) For Directors And Senior Management
II. ACRAA Best Practices Checklist - CARE's Position
III. CARE’s Code Of Conduct – IOSCO Compliance
Code Of Conduct (Code Of Ethics) For Directors And Senior Management
A credit rating agency is expected to observe highest standards of integrity and fairness in all its dealings. The directors and senior management personnel are expected to articulate the high standards of honesty, integrity, ethical and law abiding behaviour in the organisation. All the Directors and Senior Management personnel of the Company are expected to read and understand the Code of Conduct and follow these standards in performance of their duties and comply with all applicable laws, rules and regulations. All the Board members and Senior Management personnel shall affirm compliance with the Code on an annual basis. For this purpose, “Senior Management” shall mean members of management at the level of Deputy General Manager and above.
Honesty and Integrity
The Directors/senior management shall act honestly and with integrity in all of their dealings for the company. They should not make any promise or commitments which the company does not intend to or would be unable to honour. Directors and senior management will not use company information obtained by them for personal gain whether financial or otherwise or for the benefits for any other person or business.
Directors and senior management will ensure that confidential information relating to customers, employees and Company’s operations is not given either inadvertently or deliberately to third parties without consent of the Company obtained in writing and subject to confidentiality agreement entered into with the client..
Conflict of interest
Directors and senior management shall fully disclose active private or other business interests promptly and any other matters which may lead to potential or actual conflicts of interests with CARE. No personal benefit shall be derived by influencing any decisions of the company on any commercial transaction.
Protection and proper use of assets
The Company expects each Director and Senior Management Personnel to use all reasonable endeavours to protect any Company asset and to ensure its efficient use.
Compliance with laws, regulations, policies and procedures
Each Director and Senior Management Personnel must:
i)comply with applicable laws, rules and regulations;
ii)comply with the policies and procedures of the Company, including its corporate code of conduct and code of conduct for insider trading; and
iii)encourage other officers and employees to do the same.
Reporting of any illegal or unethical behaviour
Directors and senior management shall promptly contact the Chairman of the Audit Committee or Managing Director or the Compliance Officer if any director or senior management personnel believe that he or she has observed illegal or unethical behaviour by any employee, officer or director, or by anyone purporting to be acting on Company’s behalf. Whistle Blower policy of the Company provides adequate protection to employees raising bonafide issues.
Payments, Gifts, Entertainment and Travel
Directors and senior management shall not use their status to seek personal gain from those doing business or seeking to do business with the Company. Directors and senior management shall not accept any gift or other benefits except those extended as a part of social custom.
Waivers and Modifications
Waivers of this code of Conduct will be granted only when determined to be appropriate under the circumstances and in accordance with applicable law, and only upon approval by the Board of Directors or an authorised committee thereof. This Code of Conduct is also subject to modification by the Board of Directors at any time in order to ensure continued compliance with applicable laws, rules and regulations.
ACRAA Best Practices Checklist - CARE's Position
CARE is a founder member of Association of Credit Rating Agencies in Asia (ACRAA). ACRAA was formed on September 14, 2001 by Asian Credit Rating Agencies and it is assisted by Asian Development Bank (ADB). ACRAA was formed to promote::
exchange of skills and ideas amongst Asian rating agencies
establishment of best practices and norms of conduct among Asian rating agencies
development of financial markets in Asia
significant initiative undertaken by the Best Practices Committee of ACRAA was to create the ACRAA Best Practices Checklist. All Member Agencies are expected to declare their positions on each of the items in the checklist. CARE's position on these items is set out below.
A. QUALITY AND INTEGRITY OF THE RATINGS PROCESS
1) Specification and description of Rating Process and Criteria
CARECARE has a clearly specified and publicly disclosed rating processes and criteria for arriving at a rating.
2) Published and explicit Ratings Review / Appeal Process
CARE has put in place a structured review and appeal process.
3) Policy on Rating Withdrawals
Ratings are normally withdrawn only when the rated instrument is fully repaid or extinguished. Exceptions are made only in the specific instruments/ratings which tend to be perpetual in nature, these ratings are withdrawn upon specific notice of withdrawal.. In extreme cases of issuer non co-operation, CARE suspends ratings with due notice to the issuer and the reason for suspension is disclosed publicly.
4) Policy on Disclosure of unaccepted ratings
In terms of the provision of the rating mandate, unaccepted ratings are not published. However, as an exception, they would be revealed only to regulatory authorities, if required and formally requested for by the agencies. Such exceptional revelation is provided for in the rating mandate from issuers.
5) Policy on surveillance
CARE’s credit ratings are normally kept under surveillance during the life of the instrument with a detailed annual review involving interaction and discussion with the management of the rated entity. Rating review can also be triggered by any major development in the company or in the industry, which may have a significant bearing on the creditworthiness of the issuer. Private ratings which are carried out on a one time basis may not be placed on surveillance.
6) Policy on code of ethics of ratings agency and its staff
All our staff members are governed by staff rules which also includes ethical conduct. Staff members, directors and rating committee members required to comply with an elaborate code of conduct . As per company’s policy, compliance of the code of conduct has to be certified annually by all staff members, directors and rating committee members.
7) Validity of ratings
Once accepted, CARE's credit ratings are valid for the life of instrument, till withdrawn or suspended. Also, a rating may be revised based on a periodic review by CARE during the life of the instrument
8) Publication on the Limitations of
i) Rating Rigour
ii) Information adequacy
Limitations of rating are disclosed in our brochure and website http://www.careratings.com/.
9) Assurance or guarantee of ratings
CARE does not, either implicitly or explicitly, give any assurance or guarantee of a particular rating prior to a rating assessment. This policy, however, does not preclude us from developing prospecting assessments used in structured finance and similar transactions.
10) Policy on Compliance Officer
We have policies and procedures that specify the role of a compliance officer. Policies have also been instituted that encourage employees to report activities illegal, unethical, or in any way contrary to the CRA’s code of conduct to the Compliance Officer.
11) 11)Separation of analyst compensation and revenue from issuer
The compensation of individual analysts is not based on the amount of revenue that the CRA derives from the issuers that the analysts rate or with whom the analysts regularly interacts.
B. CRA INDEPENDENCE AND AVOIDANCE OF CONFLICT OF INTEREST
12) Published Policy on dependence on third parties:
CARE generally relies on authenticated information furnished to it while undertaking the rating exercise. Nevertheless, reasonable due diligence is carried out to cross check and verify the reliability of information. CARE also makes suitable adjustments to the financial statements, where required to ensure that a meaningful rating exercise is done.
13) Disclosure of Interests
In case CARE's rating committee/board and the board of the rated entity have any common member, such members do not participate in the rating process of the concerned entity. This is also disclosed publicly wherever applicable.
14) Separation of businesses
Our credit rating business and rating analysts are operationally separated from any other business that may have a potential for conflict of interest.
15) Disclosure of general nature of fee arrangements with rated entities
We disclose the general nature of fee arrangements with rated entities on our website.
16) Disclosure of non-rating revenues from rated entities
CARE’s Rating and Non-rating businesses (advisory business) were separate and operated independently . Since February 2008, CARE has decided to phase-out its advisory business.
17) Trading Policy for CRA employees
CARE’s code of conduct for its employees includes trading policy, which, amongst other things, prohibits employees from transacting in securities when they possess confidential information concerning the issuer.
18) Policy on employees directly involved in the rating process initiating, or participating in, discussions regarding fees or payments with the rated entity.
It is our policy to exclude rating analysts from business development activities. The business development team and senior management are involved in Business development.
C. CRA RESPONSIBILITIES TO THE INVESTING PUBLIC, ISSUERS, AND REGULATORS
19) The Ownership of the agency
The ownership profile of CARE is disclosed on our website.
20) The agency’s Management and Board Structure
Composition of board members is disclosed on our website and in corporate brochures. Analyst contact is also available on the web site.
21) Constitution of the Rating Committee
Composition of rating committee is disclosed on our website and in corporate brochure.
22) Disclosure of what Ratings issued by the agency mean
CARE ratings for debt instruments indicate the probability of default of the rated instruments.
23) Policy on time to communicate ratings
New ratings are normally made public on acceptance by the issuer with a few exceptions where regulations require all ratings to be made public or the rating exercise is carried out for private use. With regard to surveillance of outstanding ratings, it is CARE's policy to disseminate rating decisions immediately after advising the issuer. Reasonable time is provided to issuers to appeal for a review.
24) Guidelines on Rating Rationale: timeliness
CARE's rating rationale is published simultaneously with the announcement of rating.
25) Guidelines on Rating Rationale: content
Our rating rationales include factors taken into account in arriving at the rating, financial and operating information, management details, market position of the issuer, outlook and key rating sensitivities.
26) Publication of Default and Transition statistics
Rating transition and Default statistics are regularly compiled and disseminated to public.
27) Existence and publication of a Policy on Unsolicited Ratings: whether they will be undertaken, if so based on what information.
CARE does not undertake unsolicited ratings.
28) Policy on preserving confidentiality of privileged information (and exceptions for regulatory queries)
CARE does not reveal confidential information obtained during the rating exercise to anyone under any circumstances, except when required by law to specified authorities.
D. DISCLOSURE OF THE CODE OF CONDUCT AND COMMUNICATION WITH MARKET PARTICIPANTS
29) Publication of the CRA code of conduct
CARE has an elaborate code of conduct for its staff members, directors and rating committee members. The code of conduct for Board/Senior Management of CARE is disclosed on our web site.
30) Existence of a dedicated function/group within the organization charged with informing market participants and public regarding any questions, concerns, or complaints that the CRA may receive.
Senior Management and Sector Heads interact/respond to market participants and public regarding any questions, concerns or complaints that CARE may receive.
CODE OF CONDUCT for CARE
CARE has aligned its code of conduct with ‘Code of Conduct Fundamentals for credit rating agencies’ (the ‘IOSCO Code’) issued by the International Organization of Securities Commissions (IOSCO), as amended upto March 2015. The same is attached here.
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