2. OVERVIEW
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CARE Ratings commenced its operations in April 1993.
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It is the second-largest credit rating agency in India.
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CARE is recognized by the Securities and Exchange Board of
India(SEBI), Government of India(GOI) and Reserve Bank of
India(RBI).
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The CARE was promoted by finance companies, banks and
investment companies.
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The three largest shareholders of CARE are IDBI Bank, SBI and
Canara Bank.
3. Credit Rating
• An assessment of the credit worthiness of individuals,
corporations or even a country
• It is calculated from financial history, current asset and
liability
• Credit raiting tells a lender or investor the probability of
the subject being able to pay back a loan
• A poor credit rating indicates a high risk of defaulting a
loan, and thus leads to high intrest rate.
5. Resarch offered on various industries
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Banking
Retail
Automobile
Metals
Infrastructures
Textiles
Shipping
and many more ......
6. Rating Symbols
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Long term/ medium term
debt instruments
CARE AAA - Highest safety
CARE AA - High safety
CARE A
- Adequate safety
CARE BBB - Moderate safety
CARE BB - Inadequate
safety
CARE B
- High risk
CARE C
- Substantial risk
CARE D
- Default
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Short term instruments
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PR1P2RPR3PR4PR5-
lowest credit risk
Higher credit risk
High credit risk
Very high credit risk
Default on Maturity
