CareEdge launches India’s first sovereign credit ratings system

India’s first rating system: On Thursday, October 3 CareEdge Ratings launched Global Ratings with the release of sovereign ratings of 40 countries.  With this, the CareEdge becomes the first credit rating agency from India to enter the Global Scale Ratings space including Sovereign Rating through its IFSC Gift City subsidiary, CareEdge Global IFSC Ltd. 

Ashwini Vaishnaw , Minister for Railways, Information and Broadcasting, Electronics and IT presided over the launch event. KV Kamath, Corporate Leader, Ashish Kumar Chauhan, MD & CEO NSE , and Sanjeev Sanyal, Member, EACPM, are also joining the event along with participation in a fireside chat. 

Sovereign credit rating agencies assess and assign credit ratings to countries (sovereign states) based on their ability to repay debt. The agencies analyse economic, political, and financial factors to determine a country’s creditworthiness, which helps investors gauge the risk involved in lending money to or investing in that country.

Each agency uses a slightly different rating scale to provide an independent evaluation of the country’s financial health, often influencing interest rates and investor confidence in a country. Higher credit ratings (such as AAA or AA) suggest lower risk, while lower ratings (such as BB or below) indicate higher risk, including the potential for default.

As of now, the space has been completely dominated by Western rating agencies like Fitch Ratings, MSovereign credit rating agencies assess and assign credit ratings to countries (sovereign states) based on their ability to repay debt.oody’s, S&P Global Ratings, Standard & Poor’s, and others.