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Formerly | CARE Ratings |
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Company type | Public company |
BSE: 534804 NSE: CARERATING | |
Industry | Financial services |
Founded | 1993 |
Headquarters | , |
Key people | Mehul Pandya (MD & Group CEO). [1] Sachin Gupta (ED) Revati Kasture (ED) |
Services | Credit Ratings, Analytics, Consulting, Research, ESG |
Revenue | ![]() |
Website | www |
CareEdge Group, formerly known as CARE Ratings, is an Indian credit rating agency that also offers research, analytics, risk management, and advisory services. [3] It provides credit ratings services in sectors like manufacturing, infrastructure, financial services, and structured finance. [4] It is headquartered in Mumbai, Maharashtra. [5]
CareEdge Group was established in 1993 as Credit Analysis and Research Limited. [6] It had its Initial Public Offering in December 2012. [7] The company established international subsidiaries in Mauritius in 2015, [8] Nepal in 2017, [9] and South Africa in 2023, [10] to offer ratings and advisory services in those regions. [11]
In 2024, CareEdge published its sovereign rating methodology to assess the creditworthiness of sovereign debt issuers globally. [12] In 2024 the African Peer Review Mechanism and Care Ratings (Africa) signed a Memorandum of Understanding to collaborate in developing credit rating standards for Africa. [13]
In 2023, V. Anantha Nageswaran, Chief Economic Advisor to the Government of India, published a paper suggesting reforms to the methodologies used by global credit rating agencies, indicating potential bias against developing countries. [14] In the paper, Nageswaran, along with his co-author, Rajiv Mishra stated that, the global ratings agencies risked "sowing suspicion about discriminatory intent". [15] The paper went on to say that "developing countries have seen over 95% of all downgrades despite experiencing milder economic contractions than their advanced economy counterparts." [16]
CARE Ratings Limited is the parent company of the CareEdge Group. It commenced operations in April 1993 and became publicly listed on 26 December 2012 on both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE). [17]
As of June 2024, CARE Ratings Limited operates several wholly owned subsidiaries focused on analytics, ESG assessments, and international credit rating services. [18]
CareEdge Group, along with other credit rating agencies such as ICRA Limited, assigned credit ratings to Infrastructure Leasing & Financial Services (IL&FS) and its subsidiaries. During the period of IL&FS's financial difficulties, CareEdge and other agencies maintained high ratings for IL&FS entities, with downgrades occurring after defaults began. [29]
An audit conducted by Grant Thornton found that IL&FS management provided incomplete or inaccurate information, which affected the rating processes of CareEdge and other agencies. [29] This contributed to challenges in reflecting IL&FS’s financial condition in the ratings in a timely manner. [30]
The Securities and Exchange Board of India (SEBI) reviewed the rating processes and imposed penalties on CareEdge and ICRA for procedural lapses identified in connection with the IL&FS matter. [30] The issuer-pays model, used by CareEdge and other rating agencies, has been noted by analysts as a potential source of conflicts of interest in the credit rating industry. [31]
An independent inquiry into the leadership of Rajesh Mokashi, who served as CEO of CareEdge during the IL&FS events, found no evidence of wrongdoing on his part. [32] Following these events, CareEdge appointed Ajay Mahanjan as CEO, and in 2022, Mehul Pandya was promoted internally to lead the group. [33] [34] [35] [36]
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