ICRA is an institution, specifically a credit rating agency, whose full form is Investment Information and Credit Rating Agency. It is registered with the Securities and Exchange Board of India (SEBI).
The institution was originally incorporated as "Investment Information and Credit Rating Agency of India Limited" on January 16, 1991, by leading financial institutions, commercial banks, and financial services companies. It was established to provide independent and objective credit ratings and research services, addressing the need for a domestic agency with a thorough understanding of the Indian market, as credit ratings were previously provided by foreign agencies. It launched its credit rating service on September 1, 1991.
ICRA's primary mechanism is to provide credit ratings for various debt instruments, such as fixed income securities, commercial papers, debentures, and term loans. These ratings help investors and lenders assess the creditworthiness of the issuer and the associated risks. The rating process involves a comprehensive analysis of the issuer's financial health, debt profile, management quality, and industry trends. The highest rating assigned by ICRA is [ICRA]AAA, which signifies the highest degree of safety regarding the timely fulfillment of financial obligations.
ICRA is one of India's major credit rating agencies, alongside CRISIL and CARE. It connects to the global financial market through a strategic alliance with Moody's Investors Service, which is also its largest shareholder, holding a 51.86% majority stake as of end December 2024. The company's name was formally changed to ICRA Limited from Investment Information and Credit Rating Agency of India Limited, with a fresh certificate of incorporation obtained on February 3, 1995. The company went public on April 13, 2007, listing on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).