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

1. Business Overview & Core Segments

Credit rating agencies (CRAs) play a critical role in financial markets by assessing the creditworthiness of debt instruments, companies, and financial products. In India, CRISIL, ICRA, CARE Ratings, India Ratings & Research, and Brickwork Ratings are among the key players. Each agency has unique strengths, ownership structures, and market positions.

CRISIL

  • Business Model: CRISIL, a subsidiary of S&P Global, is the largest credit rating agency in India. It offers credit ratings, research, risk advisory, and analytics services.
  • Core Segments:
    • Credit Ratings (corporates, banks, MSMEs, structured finance)
    • Research (industry research, data analytics, risk solutions)
    • Advisory Services (financial consulting, benchmarking services)
  • Key Strengths: Strong global backing (S&P Global), well-diversified revenue streams, extensive research capabilities.

ICRA

  • Business Model: ICRA, affiliated with Moody’s Investors Service, focuses on credit ratings, research, and risk management.
  • Core Segments:
    • Credit Ratings (corporate, structured finance, financial institutions)
    • Consulting (risk management, financial sector advisory)
    • Data & Analytics (research reports, industry insights)
  • Key Strengths: Moody’s backing, strong presence in structured finance ratings, independent and transparent methodology.

CARE Ratings

  • Business Model: A fully Indian-owned CRA, CARE Ratings is known for its strong focus on ratings for SMEs, infrastructure projects, and financial institutions.
  • Core Segments:
    • Credit Ratings (corporate, MSMEs, infrastructure)
    • Grading Services (IPO gradings, ESG ratings)
    • Research & Advisory (sectoral research, due diligence services)
  • Key Strengths: Strong domestic brand, cost-effective rating services, significant market presence in SME ratings.

India Ratings & Research

  • Business Model: A wholly owned subsidiary of Fitch Ratings, India Ratings provides credit opinions across sectors, including corporates, infrastructure, and public finance.
  • Core Segments:
    • Credit Ratings (corporates, banks, insurance, public finance)
    • Research & Risk Solutions (debt market research, analytics)
    • Sector-Specific Ratings (PSUs, municipal bonds, infra projects)
  • Key Strengths: Global expertise from Fitch, strong credibility among institutional investors.

Brickwork Ratings

  • Business Model: A relatively smaller CRA in India, Brickwork Ratings specializes in SME ratings, bank loan ratings, and municipal bonds.
  • Core Segments:
    • Credit Ratings (SMEs, financial institutions, bank loans)
    • Risk Advisory (ESG ratings, credit risk assessments)
    • Research Services (industry reports, economic research)
  • Key Strengths: Focused expertise in SME and municipal bond ratings, fast-growing domestic presence.

2. Market Share & Competitive Positioning

Agency Market Share (%) Global Affiliation Specialization Areas Industry Recognition
CRISIL ~30% S&P Global Diversified (corporate, financial, research) Highest credibility & extensive data analytics
ICRA ~20% Moody’s Structured finance, corporate ratings Strong presence in debt market
CARE Ratings ~18% None (Indian-owned) SME, infra, financial institutions Well-trusted among mid-sized firms
India Ratings ~15% Fitch Ratings Public finance, infra, corporate Institutional investor credibility
Brickwork Ratings ~5-7% None SME, bank loans, municipal bonds Niche but growing player

CRISIL dominates the Indian rating industry due to its global connection and deep market penetration. ICRA and CARE Ratings follow, with strong positions in structured finance and SME ratings, respectively. India Ratings benefits from Fitch’s expertise, while Brickwork Ratings remains a niche player.


3. Revenue, Profitability & Growth Trends

Agency Revenue (FY23) Profitability Growth Prospects
CRISIL ₹2,700 Cr High Strong due to research & advisory expansion
ICRA ₹900 Cr Moderate Steady, backed by Moody’s expertise
CARE Ratings ₹600 Cr Moderate Good, driven by SME & infra growth
India Ratings ₹450 Cr Moderate Expanding in municipal & infra ratings
Brickwork Ratings ₹200 Cr Low Limited, faces credibility challenges

CRISIL remains the revenue leader, benefiting from its diversified portfolio. ICRA and CARE Ratings maintain steady profitability, while India Ratings is growing in public sector ratings. Brickwork Ratings, though small, is expanding in SME segments.


4. Strengths & Weaknesses

Agency Strengths Weaknesses
CRISIL Global backing, diversified services, strong analytics Higher costs, perceived bias due to global ownership
ICRA Moody’s support, structured finance expertise Relatively lower market share than CRISIL
CARE Ratings Strong domestic brand, cost-effective ratings Lacks international backing
India Ratings Fitch expertise, strong debt market credibility Limited visibility compared to CRISIL & ICRA
Brickwork Ratings Niche expertise in SME, growing market share Lower credibility, regulatory scrutiny

CRISIL’s global connection and extensive data analytics set it apart, while ICRA and India Ratings benefit from their international affiliations. CARE Ratings remains a cost-effective domestic leader, whereas Brickwork Ratings is still establishing credibility.


5. Future Strategies & Market Outlook

  • CRISIL: Expanding risk solutions, AI-driven analytics, ESG ratings.
  • ICRA: Strengthening structured finance and fintech ratings.
  • CARE Ratings: Enhancing SME & infra coverage, entering ESG space.
  • India Ratings: Growing in public finance & municipal bonds.
  • Brickwork Ratings: Focusing on SME ratings and fintech collaborations.

The Indian credit rating market is poised for growth, driven by increasing debt issuances, infrastructure projects, and regulatory emphasis on credit quality. Agencies with strong research capabilities and international backing will likely lead, while domestic players like CARE and Brickwork Ratings will focus on niche markets.


6. Investors & Customers

Agency Major Investors Key Customers
CRISIL S&P Global (67%) Banks, corporates, NBFCs, government entities
ICRA Moody’s (51.9%) Bond issuers, insurance firms, fintech companies
CARE Ratings Publicly held (various investors) SMEs, mid-sized corporates, infrastructure firms
India Ratings Fitch Ratings (100%) Institutional investors, government bodies
Brickwork Ratings Privately held MSMEs, banks, municipalities

CRISIL and ICRA benefit from strong global investors, while CARE Ratings and Brickwork Ratings cater to domestic firms. India Ratings, owned by Fitch, has credibility among institutional investors.


Conclusion

CRISIL leads the Indian credit rating market with strong global support, research capabilities, and a diversified portfolio. ICRA and India Ratings leverage their Moody’s and Fitch connections for structured finance and public sector ratings. CARE Ratings remains a strong Indian player, particularly in SMEs and infrastructure. Brickwork Ratings, while growing, faces credibility challenges.

Date Updated:

February 12, 2025

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