CareEdge Group
 | |
| Formerly | CARE Ratings |
|---|---|
| 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 |  ₹251 crore (US$30 million) (December 2023)[2] |
| 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]
History
[edit]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]
Sovereign Ratings
[edit]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]
Company structure
[edit]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]
- CARE Analytics & Advisory Private Ltd, formerly known as CARE Risk Solutions Pvt Ltd, which provides analytics and advisory services.[19][20]
- CARE ESG Ratings Ltd, previously known as CARE Advisory Research and Training Ltd, focused on ESG assessments.[21]
- CareEdge Global IFSC Ltd, based in the International Financial Services Centre in GIFT City, offering global financial services.[22][23]
- International subsidiaries include:
- CARE Ratings (Africa) Private Limited, licensed by the Financial Services Commission (Mauritius) in May 2015 and recognized as an External Credit Assessment Institution (ECAI) by the Bank of Mauritius in May 2016.[24][25]
- CARE Ratings South Africa (Pty) Ltd, operating in South Africa.[26]
- CARE Ratings Nepal Limited, incorporated in Kathmandu and licensed by the Securities Board of Nepal (SEBON) on 16 November 2017 as the second credit rating agency in Nepal.[27][28]
Involvement in the Infrastructure Leasing & Financial Services Crisis
[edit]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]
References
[edit]- ^ "CARE Ratings Limited Announces Re-Designation of Mehul Pandya from CEO to Group CEO". market screener. Retrieved 19 March 2024.
- ^ "December 2023 results" (PDF). Care Ratings Limited. Retrieved 31 December 2023.
- ^ Kumar, K Ram (27 January 2025). "Non-rating businesses' contribution to overall revenues to double to 20% in 2-3 yrs: CareEdge Ratings". The Hindu BusinessLine. The Hindu. Retrieved 22 March 2025.
- ^ "CARE Ratings Ltd". Aditya Birla Capital. Aditya Birla Money Limited. Retrieved 23 March 2025.
- ^ "CareEdge Group Company Profile | Management and Employees List". Datanyze. Retrieved 1 April 2025.
- ^ "CARE Ratings Ltd. Company History and Annual Growth Details". Goodreturns. Retrieved 23 March 2025.
- ^ "Credit Analysis & Research Ltd IPO (CARE IPO) Detail". Chittorgarh. Retrieved 23 March 2025.
- ^ "CARE Ratings Ltd Company Summary". IIFL. Retrieved 30 March 2025.
- ^ "About Us". CareEdge Ratings Nepal. CareEdge Ratings. Retrieved 30 March 2025.
- ^ "Incorporation of step-down subsidiary of the Company" (PDF). The National Stock Exchange of India. Retrieved 30 March 2025.
- ^ Ghosh, Shayan; John, Satish (3 April 2024). "How a domestic rating agency wants to take on the big guns". Mint. Retrieved 23 March 2025.
- ^ "CareEdge Ratings to assess credit profile of sovereign debt issuers". The Hindu Business Line.
- ^ "The APRM and CARE Ratings (Africa) Signed a Memorandum of Understanding for Credit Rating Collaboration". African Peer Review Mechanism. 9 March 2024. Retrieved 17 June 2024.
- ^ "India's chief economic advisor questions Fitch, S&P and Moody's rating metrics - CNBC TV18". CNBCTV18. 22 December 2023. Retrieved 1 April 2025.
- ^ "India's economic adviser calls for review of sovereign ratings methods". ThePrint. 22 December 2023. Retrieved 30 September 2024.
- ^ "India's economic adviser calls for review of sovereign ratings methods". Reuters. 22 December 2023. Retrieved 25 June 2024.
- ^ "CARE Ratings IPO". BSE India. Retrieved 23 July 2025.
- ^ "CARE Ratings Q2 Results: Consolidated PAT Rises 22% to Rs 36 Crore". Business Standard. 24 October 2024. Retrieved 23 July 2025.
- ^ "CARE Ratings Q2 Results: Consolidated PAT Rises 22% to Rs 36 Crore". Business Standard. 24 October 2024. Retrieved 23 July 2025.
- ^ "Directors' Report: CARE Ratings Limited". The Economic Times. Retrieved 23 July 2025.
- ^ "CARE Ratings Rebrands ESG Arm". Business Standard. 1 May 2024. Retrieved 23 July 2025.
- ^ "CareEdge Group Launches Global IFSC Arm". The Economic Times. 7 October 2024. Retrieved 23 July 2025.
- ^ "CareEdge Expands to GIFT City". Hindustan Times. 7 October 2024. Retrieved 23 July 2025.
- ^ "APRM and Care Ratings Africa Sign MoU". African Peer Review Mechanism. 3 May 2024. Retrieved 23 July 2025.
- ^ "Care Ratings Africa Signs MoU with APRM". Platform Africa. 1 May 2024. Retrieved 23 July 2025.
- ^ "CARE Ratings Ltd Company Profile". Reuters. Retrieved 23 July 2025.
- ^ "CARE Ratings Nepal Commences Operations". Business Standard. 16 November 2017. Retrieved 23 July 2025.
- ^ "CARE Ratings Nepal Gets SEBON License". The Economic Times. 16 November 2017. Retrieved 23 July 2025.
- ^ a b "IL&FS Audit Report Highlights Management's Role in Misleading Rating Agencies". Business Standard. 16 August 2019. Retrieved 23 July 2025.
- ^ a b "Order in the Matter of IL&FS". Securities and Exchange Board of India. 25 June 2020. Retrieved 23 July 2025.
- ^ "How IL&FS Crisis Led to Panic in the Indian Domestic Market". Groww. 3 July 2023. Retrieved 23 July 2025.
- ^ "Independent Inquiry Clears Former CareEdge CEO". Business Standard. 15 March 2020.
- ^ "CareEdge Group Leadership Changes". CareEdge Group. 10 June 2022.
{{cite web}}: Missing or empty|url=(help) - ^ "SEBON". www.sebon.gov.np. Retrieved 26 June 2024.
- ^ "Care Rating Nepal gets Sebon's nod". kathmandupost.com. Retrieved 26 June 2024.
- ^ "Care Ratings Nepal receives Operating License from SEBON". www.newbusinessage.com. 19 November 2017. Retrieved 26 June 2024.