Mumbai, India (October 4, 2024): CareEdge Ratings, a leading Indian credit rating agency, has broken new ground by becoming the first Indian agency to enter the Global Scale Ratings space. This historic achievement was announced today through its subsidiary, CareEdge Global IFSC Limited.
Sovereign Ratings Unveiled at Grand Launch
CareEdge unveiled its debut report, “Sovereign Ratings of Global Economies,” assigning sovereign ratings to 39 countries during a grand event at GIFT City, Gandhinagar. The launch ceremony was graced by figures from the regulatory, corporate, and policymaking spheres, including Shri K.V. Kamath, a renowned Indian corporate leader, Shri Ashish Kumar Chauhan, MD & CEO of NSE, and Shri Sanjeev Sanyal, Member of the Economic Advisory Council to the Prime Minister.
Global Ratings Breakdown
CareEdge Global’s initial rating action assigned the following ratings:
- AAA: Germany, Netherlands, Singapore, Sweden
- AA+: Australia, Canada, USA
- AA-: France, Japan, Korea, UAE, UK
- A+: Portugal
- A: China, Spain
- A-: Chile, Malaysia, Thailand
- BBB+: Botswana, India, Philippines
- BBB: Indonesia, Italy, Mauritius
- BBB-: Mexico, Morocco, Peru
- BB+: Brazil, Colombia, Greece, Vietnam
- BB: South Africa
- B+: Turkey
- B: Nigeria
- B-: Ecuador, Egypt
- CCC+: Bangladesh
- CCC: Argentina
- D: Ethiopia
Transparency and Nuanced Understanding
Speaking at the event, CareEdge MD & Group CEO Mehul Pandya emphasized the significance of this milestone. He highlighted the importance of transparency in sovereign rating methodologies, particularly regarding growth potential and investment needs of different economies. CareEdge’s ratings, he stressed, reflect this commitment to transparency.
Robust Methodology for Creditworthiness
CareEdge’s Sovereign Ratings methodology employs a five-pillar framework to assess a country’s creditworthiness:
- Economic Structure & Resilience (25%)
- Fiscal Strength (25%)
- External Position & Linkages (16.67%)
- Monetary & Financial Stability (16.67%)
- Institutions & Quality of Governance (16.67%)
This approach analyzes historical and current trends while considering future projections.
Enhanced Diversity of Opinions
Rajani Sinha, Chief Economist at CareEdge Ratings, emphasized the robustness of their methodology and its ability to precisely capture the unique aspects of both developed and developing economies. She believes this will provide investors with valuable information and contribute to a richer tapestry of global economic insights.
