ICRA Full Form

ICRA stands for Investment Information and Credit Rating Agency in full. For its unique and beneficial functions, the ICRA is extremely popular. The Investment Information and Credit Rating Agency is a reliable source of financial information for investors.

In 1991, the ICRA was revised and renamed from the IICRA to the current ICRA.

The ICRA became a publicly traded business in April of 2007. The ICRA converted the company from a private limited company to a public corporation.

The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) both trade ICRA shares. This is a joint venture business founded by a number of Indian commercial banks as well as a few other financial institutions.

ICRA Services 

ICRA provides a variety of services to investors, companies, individuals, and creditors. The following are the special features:

  • Several investors, entities, people, and creditors are guided by it.
  • It assigns a rating to enterprises in the multi-sector to assist them in making investment decisions.
  • They provide advanced services to intermediaries in order to improve the efficiency of the fundraising process.
  • ICRA promotes market transparency by monitoring and regulating a number of companies.
  • To improve the borrower’s ability to access a large number of resources.

ICRA Unique Factors

The Investment Information and Credit Rating Agency is known for several distinct characteristics, including the following:

  • This company is made up of various different businesses and their subsidiaries.
  • The ICRA is a publicly traded business with a limited number of shares.
  • ICRA is listed on BSE and NSE.
  • This organization is one of the country’s most well-known credit rating firms.
  • This entity rates debt instruments submitted by financial institutions, government undertakings, manufacturing companies, commercial banks, and other entities.
  • Moodys Investment Service and this credit rating agency are partners. It is ICRA’s most powerful stockholder.

Companies covered under ICRA Rating:

Companies in the following sectors receive the ICRA rating:

  • Financial Sector
  • Structured Financial Sector
  • Infrastructure Sector 
  • Debentures and mutual funds
  • Public Finance Sectors
  • Corporate Debt Rating

Criteria of ICRA rating 

As previously stated, ICRA provides credit rating services for a variety of financial instruments and businesses based on a set of criteria. The ICRA assigns credit ratings to the securities listed below.

  1. Long-term investment securities

The instruments like NCD with a period of 1 year or more comes under the category of long period securities. The ICRA rates the debt instruments in the range of [ICRA]AAA to [ICRA]D, 

  • [ICRA]AAA The ICRA has given this entity the highest rating.
  • [ICRA]AA Excellent score
  • [ICRA]A sufficient level of safety
  • [BBB [ICRA] Moderate degree
  • ICRA]BB Moderate danger
  • High-Risk ICRA]B
  • Very High Risk (ICRA)
  • [ICRA]D represents the greatest risk to investors and is predicted to fail soon.
  1. Medium-term securities (only for Public Deposits)

The category of Securities of the Medium Period includes public deposit programs. The ICRA assigns the following ratings to these medium-term securities:

  • ICRA’s highest rating is MAAA.
  • MAA The highest credit-worthiness
  • MA The highest credit-worthiness
  • Appropriate Credit Quality (MB)
  • MC Insufficient credit quality
  • MD The ICRA has given it the lowest grade.
  1. Securities for a limited time

The rating category of short term securities includes instruments with a term of less than one year.

The ICRA assigns a rating to each category based on the following criteria:

  • [ICRA]A1 ICRA’s highest rating.
  • [Medium [ICRA]A2 rating
  • [A4 (ICRA) medium rating
  • [ICRA]D is the lowest ICRA rating and carries the greatest risk for investors.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top