Comparing CRISIL, ICRA, CARE Ratings, India Ratings & Research, and Brickwork Ratings

Industry Overview

Credit rating agencies (CRAs) play a pivotal role in India’s capital markets by assessing the repayment capability of issuers—corporates, PSUs, NBFCs, and more. SEBI regulates CRAs via disclosure-driven mandates to ensure transparency and protect investor interests.

The major SEBI-registered agencies today include CRISIL, ICRA, CARE, Brickwork, India Ratings & Research, SMERA, and Infomerics. Of these, CRISIL, ICRA, CARE, and Brickwork are often the most cited in issuer filings and investor updates.

Agency Profiles & Investor Insights

CRISIL (Credit Rating Information Services of India)

• Founded in 1987 and now majority-owned by S&P Global, CRISIL is India’s first and largest rating agency.
• Offers a wide suite—from corporates and banks to infrastructure and mutual funds—with its rating scale spanning ‘CRISIL AAA’ to ‘CRISIL D.’
• Known for integrity, robust analytics, and high visibility—especially in infrastructure and ESG scoring.
• Investor Edge: Broad market reach and strong brand; stable, diversified revenue and pricing power.

ICRA Limited (Investment Information & Credit Rating Agency)

• Established in 1991 and backed by Moody’s, ICRA brings global research practices to Indian credit analysis.
• Provides ratings from ‘AAA’ to ‘D,’ and specializes in structured finance, performance ratings, and mutual funds assessments.
• Investor Edge: Moody’s association boosts credibility; focused on active research and niche debt instruments.

CARE Ratings (Credit Analysis & Research)

• Founded in 1993, CARE is known for its strong profitability and sectoral depth across corporate debt, bank loans, and infrastructure ratings.
• Market share-wise, CARE has historically hovered second behind CRISIL in revenues. It operates with a healthy return on equity and disciplined dividend track record.
• Investor Edge: Highly profitable, focused on income generation, a defensive value pick in the oligopolistic ratings sector.

Brickwork Ratings

• Launched in 2007 and accredited by both SEBI and RBI, Brickwork fills gaps in SME, infrastructure, and municipal ratings.
• Uses a rating scale from ‘BWR AAA’ to ‘BWR D.’
• Investor Edge: Niche focus on regional players and smaller entities could deliver growth as larger agencies dominate blue-chip ratings.

Comparison Snapshot

Rating Scales & Methodologies

All four agencies use alphabetical rating scales from highest safety (‘AAA’) to default risk (‘D’), though each prefixes codes with agency-specific markers.

Differences lie in sector coverage, methodology transparency, and active risk monitoring. For example, CRISIL and ICRA rely on advanced financial models and strict governance, while Brickwork focuses on tailored assessments for smaller issuers.

Role, Regulation & Reputation

CRAs are vital for debt markets. Their assessments guide investor sentiment, interest rates, issuer credibility, and access to funds. SEBI mandates transparency by requiring methodologies and rating rationale be disclosed.

However, past controversies—like the IL&FS downgrades—highlight the importance of methodology integrity and independence, especially under stress.

Outlook for Value Investors

• CRISIL: Core holding—dominated relationships, global backing, and diversified income streams make it a steady institutional pick.
• ICRA: Strong potential if structured finance volumes increase; premium yet lower scale.
• CARE: High dividend yield candidate within rating agencies; earnings-focused investors should take note.
• Brickwork: Small-cap growth angle—investors looking to capture analog-to-digital transition in underserved borrowers may find upside.

Conclusion

India’s credit rating landscape is both consolidated and evolving. CRISIL, ICRA, CARE, and Brickwork each hold important market niches—from blue-chip issuance to SME inclusion. For investors, selecting among them depends on your preference for scale (CRISIL), specialized credibility (ICRA), profitability (CARE), or expansion potential (Brickwork).

The ratings industry remains a hidden gem—earning through reputation, trust, and recurring revenue—making these agencies compelling for value investing in 2025.