CARE Ratings eyes African market through Mauritius venture

Credit Analysis and Research Ltd (CARE) is planning to enter the African market through a joint venture rating agency, to be set up in Mauritius.

CARE will have 51-per cent stake in the JV while the remaining stake will be held by African Development Bank, South African credit rating company Global Credit Rating (GCR) and others.

CARE Ratings has also joined a Singapore-based consortium of credit rating agencies of four other countries for a European foray.

The consortium includes rating agencies of Brazil, Malaysia, South Africa and Portugal to set up a Singapore-based entity called ARC Rating Holding, which in turn will set up ARC Rating Europe.

The five partners will hold 20 per cent stake each in the Singapore entity, ARC Rating Holding, which in turn will hold 100 per cent in ARC Rating Europe, with office in Portugal and the UK.

ARC Rating Europe will specialise in providing rating services to large companies and not offer rating services for small businesses.

CARE would, however, look to offer rating services for both large companies and small and medium businesses in Africa through the Mauritius entity.

With offices in Lisbon, London and Mauritius, CARE hopes to serve both Indian and overseas corporate clients in Europe and the African countries.

It would give Indian companies an alternative to foreign credit rating agencies which enjoy a monopoly in providing these services in those markets.

CARE, which had launched an initial public offer in December 2012, is the country's second largest credit rating agency by revenue.

CARE Ratings has completed over 23,263 rating assignments of an aggregate value of about Rs48,25,000 crore (as of 31 March 2013), since its inception in April 1993.