Prelims level : Economy Mains level : Paper III -Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
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Why in News:

  • Rating agency Crisil said that the credit ratio or the number of upgrades is higher than the number of downgrades


  • Positive trends in credit ratio is also reflected in asset quality seen in banking sector where Non-Performing Assets had declined sharply.

Credit Rating:

  • It is a organisation that gives rating to debtors or
  • borrowers (government, companies etc) on the basis of their ability to pay back their principal loan and interest on time.
  • It gives an idea of the probability of committing a default by them on debt and other credit related instruments. Indian credit rating industry has developed over a period of time. Indian credit rating industry mainly comprises of CRISIL, ICRA, FITCH, CARE, ONICRA and SMERA.
  • The credit rating reflects the pay back abilities of individuals or company


  • This full-service rating agency is the major credit rating agency in India, with a market share of more than 60%. It is offering its services in financial, manufacturing, and service
  • The head quarter of CRISIL is in Mumbai
  • The majority stake of CRISIL was held by the world’s largest rating agency Standard & Poor’s.
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