Crisil to set up base in Caribbean

Close on the heels of Corporate India, domestic rating agencies are looking at expanding overseas.

Crisil has undertaken a feasibility study for setting up of an independent regional credit rating agency in the Carribbean, where it is likely to take some equity stake in the proposed $ 3 million entity.

Icra also has plans to foray into the Middle East and Kuwait through equity and technical tie-ups with local ratings agencies there.

Crisil managing director and CEO R Ravimohan said the economic and business environment in the Carribbean region was favourable for the establishment of a rating agency.

Discussions are on for Crisil to take a stake in the proposed Caribbean Information and Credit Rating Agency Ltd (CARICRA), which has appointed Crisil for technical knowhow. CARICRA will be funded by an initial public offering of $ 3 million.

"As 25 countries in the Carribbean will come together for the setting up the rating agency, the foothold of the project will be very wide. The economic viability thus looks promising," said Ravimohan.

After Crisil decided to acquire the London-based EconoMatters Ltd and its four subsidiary companies early this week, taking equity stake in the Carribbean rating agency, Crisil is exploiting opportunities in the international market.

"We are looking overseas as we have good capacity and sound quality of analysis. As Indian companies are now operating in a global environment, with this capability, we would like to exploit the opportunities," said Ravimohan.

Crisil has already done rating of a number of international companies for its Indian clients, sitting in India.

CARICRA will be Crisil's third assignment, having in the past technically supported Rating Agency Malaysia (RAM) and Israeli rating agency, MAALOT.