Rating agency Care to expand overseas ops through JV

Credit rating agency, CARE Ratings, is looking to expand its international operations through joint ventures (JVs) with rating agencies outside India.

Recently, CARE entered into non-binding agreements with four companies in Malaysia, Brazil, South Africa and Portugal, for promoting an international rating agency, said Sanjay Kumar Agarwal, general manager, CARE Ratings, at a press conference held to announce the initial public offering (IPO) of the company here on Tuesday.

The company will provide international scale ratings to assist local issuers in mobilising resources from international financial markets, according to the red herring prospectus of CARE. The company has received a no-objection letter from the Securities and Exchange Board of India to enter into a JV to establish an international credit rating agency. “After cementing our position in the Indian domestic rating market, we are equipped to go outside because our parents are not interest rate crediting agencies,” said Agarwal.

Care plans to offer 71,99,700 equity shares of a face value of Rs 10 each in the IPO, in a price band of Rs 700-750 an equity share.