Crisil picks up 9 per cent stake in Caribbean rating firm

Rating agency Crisil Ltd announced its strategic equity investment in the Caribbean Information and Credit Rating Agency Ltd.

Caribbean Information is a $3.5 million entity and multilateral agencies hold a stake in it. However, no shareholder has more than 10 per cent stake in it. It is the first regional rating agency in the world.

Crisil has picked up around nine per cent in the share capital of the Caribbean company for $3 lakh. It will also provide technical assistance to the agency to establish and stabilise its operations.

A few central banks in the Caribbean region, the US and European commercial banks, development banks and financial institutions have also picked up stakes in the agency.

The agency will offer rating and other services in 19 countries, including Bahamas, Barbados, Belize, Costa Rica, Dominican Republic, Guyana, Haiti, Jamaica, the OECS, Panama, Suriname and Trinidad & Tobago.

"As the scope of the project will be wide, the economic viability looks promising," said Crisil managing director and chief executive officer R Ravimohan, who has also joined the board of the Caribbean rating agency.

"The Caribbean agency marks an important landmark in our international initiatives in the ratings business, enabling us to transfer our capabilities offshore," he said.

This venture marks Crisil's third foreign operations overseas. In December 2003 Crisil had acquired a global gas strategy consulting, publication and training business "" the UK-based EconoMatters and its four subsidiary companies. Later, Crisil also announced its strategic equity investment in the National Commodity & Derivatives Exchange.

Crisil has also provided technical assistance in setting up the Rating Agency Malaysia (RAM) and the Israel Securities Rating Company, Maalot.