CRISIL provides first rating service for SMEs
01 September 2005
Mumbai: CRISIL has launched India's first rating service service for small and medium enterprise (SME). At a press briefing in Mumbai, held on August 31, 2005, Ravi Mohan, managing director, CRISIL announced 'SME 1' ratings, indicating the highest credit quality among SMEs, for Educomp Solutions Ltd and Su-Kam Power Systems Ltd.
CRISIL has launched its rating services for the SME sector, to meet the market's need for a credit risk benchmark for India's growing SME sector. These ratings will provide lenders with an independent benchmark to evaluate and differentiate the credit quality of their SME borrowers based on these ratings.
D Thyagarajan, director, SME ratings, CRISIL, said, "The SME sector needs tailor-made products and services. Market players dealing with the SME sector are aware of the risks of the sector; what they are looking for is an indication of relative credit quality among SMEs. CRISIL's launch of SME rating services will fulfil this need."
Roopa Kudva, executive director and chief rating officer, CRISIL, said, "There is an increasing policy thrust on SMEs, with the central government announcing an SME policy and proposing to enact the SME Bill. CRISIL will bring to bear its experience in rating diverse entities, and its in-depth understanding of risk issues, business, and markets, on this product."
SME services offered by CRISIL include 'NSIC-CRISIL
performance and credit ratings for small-scale industries',
and customised rating solutions like dealer and supplier
evaluation. CRISIL has already tied up with banks to
rate their SSI clients
under the NSIC-CRISIL scheme; ratings for microfinance
agencies and bank ratings in addition to its independent
ratings of the corporate sector, which it pioneered
in the country.