TaxTMI 
TaxTMI 
TaxTMI 
📊 Comparative Analysis: Indian vs. International Credit Rating Agencies
Here's a structured outline for a Comparative Analysis Between Indian and International Credit Rating Agencies — you can use this for a report, presentation, academic paper, or policy brief.
1️⃣ Introduction
- Definition and role of Credit Rating Agencies (CRAs)
- Importance in financial markets
- Purpose of the comparison: To understand similarities, differences, and strategic implications
2️⃣ Key Players
Aspect | Indian CRAs | International CRAs |
Leading Agencies | CRISIL, ICRA, CARE, India Ratings, Brickwork | S&P, Moody’s, Fitch, DBRS, JCR |
Year of Origin | 1987 (CRISIL) onwards | 1860s–1900s |
Ownership | Indian FIs, Banks, Govt-Private mix | Global corporations, stock-listed firms |
3️⃣ Regulatory Framework
Area | Indian CRAs | International CRAs |
Regulator | SEBI | SEC (US), ESMA (EU), IOSCO standards |
Key Regulation | SEBI (CRA) Regulations, 1999 | CRA Reform Act (US), EU CRA Regulation |
Rating Disclosure | Mandatory for public ratings | Mandatory globally |
Surveillance & Review | Required periodically | Required with detailed audit trail |
4️⃣ Scope of Work
Function | Indian CRAs | International CRAs |
Sovereign Ratings | Limited (India only) | Global (over 120 countries) |
Corporate Ratings | Yes | Yes |
SME Ratings | Actively done | Rarely done |
Structured Finance | Moderate | High (especially post-2008 reforms) |
ESG/Green Ratings | Emerging | Rapidly growing segment |
5️⃣ Methodology & Influence
Parameter | Indian CRAs | International CRAs |
Methodology | Largely aligned to international standards | Uniform but adapted per region |
Market Influence | High domestically, limited globally | Globally influential |
Transparency | Improving | Criticized post-2008; reforms underway |
6️⃣ Challenges Faced
Challenge | Indian CRAs | International CRAs |
Conflict of Interest | Issuer-pays model risk | Same model; criticism during 2008 crisis |
Default Tracking | IL&FS, DHFL downgrades questioned | Lehman, AIG cases cited |
Limited Global Reach | Outside India influence is low | Geopolitical influence often alleged |
7️⃣ Strengths & Weaknesses
Criteria | Indian CRAs | International CRAs |
Strength | Local expertise, SME coverage | Global credibility, sovereign reach |
Weakness | Perceived leniency, limited global standing | Geopolitical bias, systemic risk contribution |
8️⃣ Conclusion & Recommendations
- Indian CRAs need:
- Better independence & global partnerships
- Focus on methodology, transparency, and post-rating surveillance
- Global CRAs must:
- Improve neutrality & governance
- Include emerging market perspectives
- Both systems must be accountable, transparent, and resilient to conflicts of interest.
***