ABOUT AIRA
Association of Indian Rating Agencies (AIRA) was incorporated on May 15, 2021, as a Section 8, not-for-profit company. It was established by Acuité Ratings & Research Limited and CARE Ratings Limited, with Brickwork Ratings India Private Limited and Infomerics Valuation and Rating Limited joining shortly after through share subscriptions. AIRA was formed with the objective of enhancing industry standards and representing the collective viewpoint of Indian credit rating agencies (CRAs) before key stakeholders, including Securities and Exchange Board of India (SEBI), Reserve Bank of India (RBI), Ministry of Finance and its Departments, Parliamentary Committees, and other government and regulatory forums.
The Evolution
Credit rating as a concept emerged in the late 19th / early 20th century in the United States when investors needed independent opinions on the ability of issuers—especially railroads and industrial firms—to repay their debts. These agencies pioneered the practice of assigning letter-grade ratings (say AAA to D), which became the global standard.
Over the decades, rating agencies evolved into key players in financial markets, providing opinions not only on corporate debt but also on sovereign bonds, structured finance products, and other complex instruments. Today, rating agencies are recognized worldwide as critical institutions that help channel capital efficiently across markets.
India’s rating industry began in 1987 with the establishment of CRISIL, and subsequently ICRA, CARE Ratings, India Ratings & Research, Brickwork Ratings, Acuite Ratings & Research, Infomerics and Acer Ratings. The Indian rating ecosystem has since matured into a vibrant industry regulated by the Securities and Exchange Board of India (SEBI), with rating agencies now playing a pivotal role in the debt market’s growth and transparency.
Without reliable ratings, the flow of capital would be slower, riskier, and more concentrated, weakening both economic growth and financial resilience.