Why in news?
- ILFS crisis has cast doubt on the credibility of these agencies
What are these?
- Credit Rating Agencies (CRA) assess the creditworthiness of the organization and different entities.
- In simple words, these agencies analyse a Debtor’s ability to repay the debt and also rate their credit risk.
- All the credit rating agencies in India are regulated by SEBI (Credit Rating Agencies) Regulations, 1999 of the Securities and Exchange Board of India Act, 1992.
- There are a total of six credit agencies in India viz, CRISIL, CARE, ICRA, SMREA, Brickwork Rating, and India Rating and Research Pvt. Ltd.