CRISIL Rating: when does AAA mean B?

Abstract

This paper makes an attempt to assess the quality of credit rating function being performed by CRISIL (Credit Rating and Information Services of India Ltd.). With this objective, the paper addresses two important questions: a) Are CRISIL's standards of rating comparable to international standards? (b) Are CRISIL's ratings internally consistent? Based on the assessment of companies rated AAA by CRISIL on the S&P standards, the authors conclude that CRISIL's credit rating standards are not only much below international standards, they are also internally inconsistent