COMMENTARY
INTERVIEWS
SPECIALS
CHAT
ARCHIVES

Post-Budget phase likely to herald boom time for credit rating companies

The improving business environment and the post-Budget positive trend in the stock market would definitely add to the market potential of the credit rating companies.

This was stated by Subosh Shah, executive director of Credit Rating Information Services of India Limited or CRISIL. Shah said the market is becoming more credit-conscious.

If the prices of shares continue to rise in the stock exchanges, the business of credit rating companies will also increase, Shah said.

Commenting on the private insurance companies, he stated that the guidelines for these companies have yet to be finalised by the government. Only after receiving approval from the government, they can start functioning. ''But once they start operations, we expecti them to approach credit rating companies,'' he said.

On the mutual funds, he said that there are very few 100 per cent debt funds in India and they require a credit rating. ''In future, when such mutual funds increase, we expect more mutual funds approaching the credit rating companies,'' he added.

UNI

Business news