CareEdge Ratings is an Indian credit rating agency and a publicly-listed institution, which is the parent company, CARE Ratings Ltd. It is a knowledge-based analytical group and is recognized as India's second-largest rating agency. The institution was established in 1993 as Credit Analysis and Research Limited to provide credit ratings for sectors like manufacturing, infrastructure, and financial services. The company had its Initial Public Offering (IPO) in December 2012 and is traded on the BSE and NSE.
The core mechanism of CareEdge Ratings involves providing independent credit opinions by analyzing risks that affect an issuer's credit quality. The rating process begins with an evaluation of Core Risk Factors to determine the Core Credit Profile (CCP), which includes assessing business, financial, and management risk. Modifiers are then applied to the CCP to arrive at the Modified Credit Profile (MCP), and external factors are analyzed to determine the Issuer Credit Profile. The final step considers instrument-level factors to assign the Final Instrument Rating. Ratings are assigned using symbols on a scale, such as CareEdge AA for a high degree of safety, down to CareEdge D which denotes default on debt obligations.
CareEdge Ratings is licensed by the Securities and Exchange Board of India (SEBI) and accredited by the Reserve Bank of India (RBI). It connects directly to the Indian capital market by rating instruments like commercial papers, corporate bonds, and structured credit. The group has expanded its offerings through subsidiaries like CARE ESG Ratings Ltd, which is a SEBI-registered Category I Issuer-Pays ERP, and CareEdge Global IFSC Ltd, the first credit rating agency registered with the International Financial Services Centres Authority (IFSCA) at GIFT City. The group was formerly known as CARE Ratings and was rebranded as the CareEdge Group to reflect its broader services in analytics, consulting, and sustainability solutions. As of March 31, 2024, the company is professionally managed with no identifiable promoter.