India took a significant leap toward financial transparency and investor protection with the establishment of its first credit rating agency, CRISIL (Credit Rating Information Services of India Limited), in 1987.
CRISIL was promoted by ICICI Ltd (now ICICI Bank) and UTI (Unit Trust of India), with the objective of providing independent, professional analysis of credit risk. It marked the beginning of structured credit assessment in India’s financial system, aiding both investors and institutions in making informed decisions.
“CRISIL was a game changer. It introduced an objective framework to assess the credibility of borrowers, revolutionizing India’s financial markets,” noted a senior market analyst.
- Name: CRISIL (Credit Rating Information Services of India Limited)
- Founded: 1987
- Promoted by: ICICI Ltd and UTI
- Significance: India’s first credit rating agency
- Role: Evaluates the creditworthiness of companies, instruments, and debt issuers
Since its inception, CRISIL has expanded its role from just rating debt instruments to becoming a global analytical company, offering ratings, research, risk, and policy advisory services. It was also the first Indian rating agency to be recognized internationally and is now majority-owned by S&P Global.
The creation of CRISIL laid the foundation for the entry of other key players like ICRA, CARE, and FITCH India, collectively strengthening India’s credit ecosystem and boosting investor confidence in Indian financial instruments.
