ICRA Full Form, Functions, and Latest Financial Details

What is the full form of ICRA? – ICRA Full Form

The full form of ICRA is  Investment Information and Credit Rating Agency. It was formerly known as the Investment Information and Credit Rating Agency. It was established in 1991 by leading financial institutions, commercial banks, and financial services companies. They have an alliance with Moody’s Investors Service, which is an international credit rating agency. They are one of the largest shareholders in ICRA. The aim of this alliance is to enrich ICRA’s in-house research capabilities. Moody’s provides ICRA access to its global research base. ICRA Ltd. trades on the Bombay Stock Exchange (BSE) as well as on the National Stock Exchange (NSE). Services by ICRA Ltd. : ICRA’s credit ratings enable investors to make informed investment decisions. Credit rating helps investors in selecting the most suitable investment options. Recommended Read: Understanding Credit Rating and the Agencies in India ICRA gives credit rating to rupee-denominated debt instruments issued by –

• Manufacturing companies
• Commercial banks
• Non-Banking Finance Companies
• Financial Institutions
• Public Sector Undertakings
• Municipalities

Other services offered by ICRA include –

• Corporate Governance
• Rating Stakeholder Value and Governance Rating
• Credit Risk Rating of Debt Mutual Funds
• Rating of Claims Paying Ability of Insurance Companies
• Project Finance Rating
• Line of Credit Rating

ICRA provides information to institutional and individual investors. They also assist the regulators in promoting transparency in the financial markets. Brief History of ICRA Ltd.: January 1991 ICRA Ltd was incorporated and launched its Credit Rating Service. 1993 The company launched an independent and professional investment information service. 1995 They launched the services of Credit Assessment for small and medium scale industries. 1996 They signed an agreement with a credit rating agency Moody for risk management services. 1998 ICRA introduced a Rating Methodology for the Claims Paying Ability of General Insurance companies in India. 1999 The company became the first Indian credit rating agency to rate all non-life insurance companies. 2003 ICRA launched Project Finance Assessment Rating Service. The company entered into a shareholder and subscription agreement with IndiaCapital. 2004 They launched the services of grading of mutual fund management quality. Recommended Read: RankMF Mutual Fund Baskets – Best Option for your Financial Goals 2006 ICRA demerged their consulting division and transferred to ICRA Management Consulting Services Ltd. They acquired ICRA Online Ltd and Computer Exchange Pvt Ltd. It was later renamed as ICRA Techno Analytics Ltd. ICRA’s Credit Rating Scale : Instruments with [ICRA]AAA rating are considered to have the highest degree of safety. This is with respect to the borrower’s timely financial obligations. Such instruments carry the lowest credit risk.

• ICRA’s Long-Term Rating Scale
• ICRA’s Medium-Term Rating Scale (only for Public Deposits)
• ICRA’s Short-Term Rating Scale
• ICRA’s Issuer Rating Scale
• ICRA’s Rating Scale for Instruments supported by Explicit Credit Enhancement
• Structured Finance Rating
• ICRA Mutual Fund Credit Risk Ratings Scale & Definitions
• Special Symbols
• Liquidity Indicators Definitions
• Expected Loss Rating Scale

For the rating categories [ICRA]AA through to [ICRA]C, the modifiers + (plus) or – (minus) may be added to the rating symbols. This indicates their relative position within the rating categories concerned. For example, the rating of [ICRA]AA+ is one notch higher than [ICRA]AA. Whereas, [ICRA]AA- is one notch lower than [ICRA]AA. Key Personnel :

• Mr. N. Sivaraman – Managing Director & Group CEO of ICRA
• Ms. Ranjana Agarwal – Independent Director of ICRA
• Ms. Radhika V Haribhakti – Independent Director of ICRA
• Mr. Arun Duggal – Non-Executive Chairman and an Independent Director of ICRA
• Mr. Ramnath Krishnan – President-Ratings & Chief Rating Officer
• Mr. Vipul Agarwal – Group Chief Financial Officer

Subsidiaries :

• ICRA Analytics Limited
• ICRA Lanka Limited
• ICRA Nepal Limited
• ICRA Management Consulting Service
• PT ICRA Indonesia
• ICRA Employees Welfare Trust

Listing and Shareholding at ICRA :

A larger promoter stake is a positive sign. It indicates that the promoters believe in the company’s future growth. Nearly 52% of shares are still held by the promoters of ICRA. This shows promoter’s confidence in ICRA’s future. This also reflects in the stability of its share prices. Let’s have a look at ICRA Ltd.’s latest finances. Financial Overview(Figures in Rs. Crores) :

ICRA Ltd. Balance Sheet (Figures in Rs. Crores) :

Recommended Read : How to Analyse a Balance Sheet of a Company ICRA Ltd. Annual Profit & Loss(Figures in Rs. Crores) :

Recommended Read : Learn to Analyse Income Statement of a Company Mutual fund holdings and trends of ICRA Ltd :

Samco’s Ratings for ICRA Ltd. : ICRA’s Share Page: 4 out of 5 stars (Stock Rating Date: 17th Aug 2021) Check current rating of ICRA Share Price : https://www.samco.in/stocks/icra-ltd-share-price Valuation Analysis of ICRA Ltd. : From an investor’s perspective – If the market price is significantly lower than the intrinsic value of the stock, the stock has a high margin of safety. It is a buy signal. From a seller’s point of view – If the market price is significantly higher than the intrinsic value, it a short sell opportunity. ICRA Ltd. enjoys a high margin of safety. ICRA takes reasonable care while evaluating a company. However, it does not give a warranty or a guarantee of safety. ICRA ratings should not be considered as a recommendation to buy, sell, or deal in the rated instruments. Visit Samco’s share pages to check the star ratings for every listed company. Search for stocks to get live prices, valuation, and analysis. Open a FREE Demat account with Samco and experience world-class trading. To understand what is credit rating and how credit ratings work, watch the following video: