CareEdge Ratings, India’s leading credit rating agency, has announced that it has become the first Indian credit rating agency to enter the Global Scale Ratings space, through its subsidiary, CareEdge Global IFSC Limited.
CareEdge has unveiled a report on Sovereign Ratings of Global Economies, releasing sovereign ratings of 39 countries in a mega event held at GIFT City, Gandhinagar, India.
Many eminent personalities from regulators, corporates and policy makers were present during the launch, including Shri K.V. Kamath – renowned corporate leader in India, Shri Ashish Kumar Chauhan – MD & CEO, NSE, and Shri Sanjeev Sanyal – Member, Economic Advisory Council to Prime Minister.
In its first sovereign rating action, CareEdge Global has assigned the following ratings to 39 countries:
AAA to Germany, Netherlands, Singapore and Sweden; AA+ to Australia, Canada and USA; AA- to France, Japan, Korea, UAE and UK; A+ to Portugal, A to China and Spain; A- to Chile, Malaysia and Thailand; BBB+ to Botswana, India and Philippines; BBB to Indonesia, Italy and Mauritius; BBB- to Mexico, Morocco and Peru; BB+ to Brazil, Columbia, Greece and Vietnam; BB to South Africa ; B+ to Turkey; B to Nigeria; B- to Ecuador and Egypt; CCC+ to Bangladesh; CCC to Argentina and D to Ethiopia.
Speaking on the occasion, the Group CEO, CareEdge, Mehul Pandya said, “This is a significant milestone for us in our journey towards becoming a global knowledge-based institution.
“As India’s economic influence grows, it is both timely and appropriate for an Indian company to enter this domain. CareEdge Ratings brings with it a nuanced understanding of emerging economies – a perspective that is invaluable in today’s complex global economic environment.
“We are convinced that it is very important to have transparency in methodology of sovereign ratings, particularly in assessing the growth potential and investment needs of economies.
“This reflects in the ratings assigned by us. We are conscious of the responsibility that comes with our entry into this space and are fully committed to provide independent and unbiased opinion.”
According to the report, CareEdge Sovereign Ratings methodology involves analysis under five broad pillars to determine a sovereign’s creditworthiness.
These pillars are Economic Structure & Resilience (25 per cent weightage), Fiscal Strength (25 per cent weightage), External Position & Linkages (16.67 per cent weightage), Monetary & Financial Stability (16.67 per cent weightage), and Institutions & Quality of Governance (16.67 per cent weightage).
The assessment of each of these pillars is based on the consideration of historical, current as well as expected future trends.
Chief Economist, CareEdge Ratings, Rajani Sinha said, “Our methodology is robust and aptly captures the nuances of developed and emerging economies, even while applying consistent thresholds across countries.
“This rating assigned using our methodology will aid investors and enhance the diversity of opinions about various countries.”