CareEdge promises to bring inclusive, transparent approach to sovereign ratings

India’s first sovereign ratings: CareEdge Ratings, a key player in India's financial ratings sector, today announced the launch of its global sovereign ratings division, announcing its first ratings for 40 countries. The move marks the company's entry into the global credit rating space, reflecting a strong commitment to transparency, inclusivity, and regional understanding in risk assessment.

In the launch event, Najib Shah, Chairman and Non-Executive Independent Director of CareEdge Ratings, highlighted the company's intent to bring a fresh perspective to sovereign ratings. "We are not just establishing an Indian company's presence in the global sovereign rating industry. We believe we are bringing a more inclusive and transparent approach to this critical space," Shah said. 

Shah further highlighted the growing significance of emerging economies in shaping the global economic narrative. He noted that their increasing share in global GDP and public debt necessitates a more nuanced understanding of their unique characteristics. "The parameters used to measure a nation's potential cannot be uniform. A global perspective must consider the specific features of different regions and economies," he added.

CareEdge Ratings aims to address what Shah referred to as a "burden of perception" that often colours existing assessments of economies, particularly emerging markets. By using its expertise and in-depth regional knowledge, the company seeks to offer a credible and diverse alternative in the sovereign ratings space.

Shah also underlined that credibility will be key to the success of CareEdge Ratings’ global venture. "For our ratings to be a counterfactual alternative, credibility is crucial," he said, adding that the company's decision to enter this space stems from a clear vision to foster transparency and provide a more localised understanding of sovereign risk.

The launch of CareEdge’s Global Ratings division comes amid growing demand for alternative perspectives in sovereign credit assessments, especially from emerging economies. The firm plans to expand its footprint in global finance through its operations at the Gujarat International Finance Tec-City (GIFT City), further solidifying its role in the global credit rating industry.