{{Short description|Indian financial services company}} {{Use dmy dates|date=May 2025}} {{Use Indian English|date=May 2025}} {{Infobox company | name = CareEdge Group | former_name = CARE Ratings | logo = Logo CAREEdge subsidiaries.png | type = Public company | traded_as = {{BSE|534804}}<br />{{NSE|CARERATING}} | industry = Financial services | founded = {{Start date and age |1993 }} | hq_location_city = Mumbai | hq_location_country = India | key_people = Mehul Pandya (MD & Group CEO).<ref>{{cite news |title=CARE Ratings Limited Announces Re-Designation of Mehul Pandya from CEO to Group CEO |url=https://in.marketscreener.com/quote/stock/CARE-RATINGS-LIMITED-13255729/news/CARE-Ratings-Limited-Announces-Re-Designation-of-Mehul-Pandya-from-CEO-to-Group-CEO-46322864/ |access-date=19 March 2024 |publisher=market screener}}</ref><br /> Sachin Gupta (ED)<br />Revati Kasture (ED) | services = Credit Ratings, Analytics, Consulting, Research, ESG | revenue = {{increase}} {{INRConvert|251|c}} <small>(December 2023)</small><ref name="year results dec23">{{cite web|url=https://www.careratings.com/Uploads/newsfiles/FinancialReports/1688449173_Annual%20Report%20FY2023.pdf|title=December 2023 results|publisher=Care Ratings Limited|access-date=31 December 2023}}</ref> | website = {{URL |https://www.careratings.com/ }} }}
'''CareEdge Group''', formerly known as '''CARE Ratings''', is an Indian credit rating agency that also offers research, analytics, risk management, and advisory services.<ref>{{cite news |last1=Kumar |first1=K Ram |title=Non-rating businesses' contribution to overall revenues to double to 20% in 2-3 yrs: CareEdge Ratings |url=https://www.thehindubusinessline.com/companies/non-rating-businesses-contribution-to-overall-revenues-to-double-to-20-in-2-3-yrs-careedge-ratings/article69145451.ece |access-date=22 March 2025 |work=The Hindu BusinessLine |publisher=The Hindu |date=27 January 2025}}</ref> It provides credit ratings services in sectors like manufacturing, infrastructure, financial services, and structured finance.<ref name="auto">{{cite web |title=CARE Ratings Ltd |url=https://stocksandsecurities.adityabirlacapital.com/markets/company-background/13090 |website=Aditya Birla Capital |publisher=Aditya Birla Money Limited |access-date=23 March 2025}}</ref> It is headquartered in Mumbai, Maharashtra.<ref>{{Cite web |title=CareEdge Group Company Profile {{!}} Management and Employees List |url=https://www.datanyze.com/companies/careedge-group/1312872735 |access-date=2025-04-01 |website=Datanyze |language=en}}</ref>
==History== CareEdge Group was established in 1993 as Credit Analysis and Research Limited.<ref>{{cite web |title=CARE Ratings Ltd. Company History and Annual Growth Details |url=https://www.goodreturns.in/company/care-ratings/history.html |website=Goodreturns |access-date=23 March 2025}}</ref> It had its Initial Public Offering in December 2012.<ref name="auto1">{{cite web |title=Credit Analysis & Research Ltd IPO (CARE IPO) Detail |url=https://www.chittorgarh.com/ipo/care_ipo/358/ |website=Chittorgarh |access-date=23 March 2025}}</ref> The company established international subsidiaries in Mauritius in 2015,<ref>{{cite web |title=CARE Ratings Ltd Company Summary |url=https://www.indiainfoline.com/company/care-ratings-ltd/summary |website=IIFL |access-date=30 March 2025}}</ref> Nepal in 2017,<ref>{{cite web |title=About Us |url=https://www.careratingsnepal.com/about-us |website=CareEdge Ratings Nepal |publisher=CareEdge Ratings |access-date=30 March 2025}}</ref> and South Africa in 2023,<ref>{{cite web |title=Incorporation of step-down subsidiary of the Company |url=https://nsearchives.nseindia.com/corporate/CARERATING_26102023190627_CARE.pdf |publisher=The National Stock Exchange of India |access-date=30 March 2025}}</ref> to offer ratings and advisory services in those regions.<ref>{{cite web |last1=Ghosh |first1=Shayan |last2=John |first2=Satish |title=How a domestic rating agency wants to take on the big guns |url=https://www.livemint.com/companies/news/how-a-domestic-rating-agency-wants-to-take-on-the-big-guns-11712143176821.html |website=Mint |date=3 April 2024 |access-date=23 March 2025}}</ref>
==Sovereign Ratings== In 2024, CareEdge published its sovereign rating methodology to assess the creditworthiness of sovereign debt issuers globally.<ref>{{cite news |title=CareEdge Ratings to assess credit profile of sovereign debt issuers |url=https://www.thehindubusinessline.com/money-and-banking/careedge-ratings-to-assess-credit-profile-of-sovereign-debt-issuers/article67792297.ece |agency=The Hindu Business Line}}</ref> In 2024 the African Peer Review Mechanism and Care Ratings (Africa) signed a Memorandum of Understanding to collaborate in developing credit rating standards for Africa.<ref>{{cite web |title=The APRM and CARE Ratings (Africa) Signed a Memorandum of Understanding for Credit Rating Collaboration |url=https://aprm.au.int/en/news/press-releases/2024-05-03/aprm-and-care-ratings-africa-signed-memorandum-understanding |website=African Peer Review Mechanism |date=9 March 2024 |access-date=17 June 2024}}</ref>
In 2023, V. Anantha Nageswaran, Chief Economic Advisor to the Government of India, published a paper suggesting reforms to the methodologies used by global credit rating agencies, indicating potential bias against developing countries.<ref>{{Cite web |date=2023-12-22 |title=India's chief economic advisor questions Fitch, S&P and Moody's rating metrics - CNBC TV18 |url=https://www.cnbctv18.com/economy/india-chief-economic-advisor-questions-fitch-sp-and-moodys-rating-metrics-18627971.htm |access-date=2025-04-01 |website=CNBCTV18 |language=en}}</ref> In the paper, Nageswaran, along with his co-author, Rajiv Mishra stated that, the global ratings agencies risked "sowing suspicion about discriminatory intent".<ref>{{Cite web |date=2023-12-22 |title=India's economic adviser calls for review of sovereign ratings methods |url=https://theprint.in/economy/indias-economic-adviser-calls-for-review-of-sovereign-ratings-methods/1896718/ |access-date=2024-09-30 |website=ThePrint |language=en-US}}</ref> The paper went on to say that "developing countries have seen over 95% of all downgrades despite experiencing milder economic contractions than their advanced economy counterparts."<ref>{{cite news |title=India's economic adviser calls for review of sovereign ratings methods |url=https://www.reuters.com/world/india/indias-economic-adviser-calls-review-sovereign-ratings-methods-2023-12-22/ |access-date=25 June 2024 |work=Reuters |date=22 December 2023}}</ref>
== Company structure == '''CARE Ratings Limited''' is the parent company of the CareEdge Group. It commenced operations in April 1993 and became publicly listed on 26 December 2012 on both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE).<ref name="IPO">{{cite web |title=CARE Ratings IPO |url=https://www.bseindia.com/markets/ipo/ipo_details.aspx?scrip_cd=534804 |access-date=2025-07-23 |publisher=BSE India}}</ref>
As of June 2024, CARE Ratings Limited operates several wholly owned subsidiaries focused on analytics, ESG assessments, and international credit rating services.<ref name="Subsidiaries2024">{{cite news |date=2024-10-24 |title=CARE Ratings Q2 Results: Consolidated PAT Rises 22% to Rs 36 Crore |url=https://www.business-standard.com/markets/capital-market/care-ratings-consolidated-pat-rises-22-to-rs-36-crore-in-q2-fy25-124102400413_1.html |access-date=2025-07-23 |publisher=Business Standard}}</ref>
* '''CARE Analytics & Advisory Private Ltd''', formerly known as CARE Risk Solutions Pvt Ltd, which provides analytics and advisory services.<ref name="Subsidiaries2024"/><ref name="CAAPLDirectors">{{cite web |title=Directors' Report: CARE Ratings Limited |url=https://economictimes.indiatimes.com/care-ratings-ltd/directorsreport/companyid-61537.cms |access-date=2025-07-23 |publisher=The Economic Times}}</ref> * '''CARE ESG Ratings Ltd''', previously known as CARE Advisory Research and Training Ltd, focused on ESG assessments.<ref name="ESGRatings">{{cite news |date=2024-05-01 |title=CARE Ratings Rebrands ESG Arm |url=https://www.business-standard.com/article/companies/care-ratings-rebrands-esg-arm-124050100123_1.html |access-date=2025-07-23 |publisher=Business Standard}}</ref> * '''CareEdge Global IFSC Ltd''', based in the International Financial Services Centre in GIFT City, offering global financial services.<ref name="GlobalIFSC">{{cite news |date=2024-10-07 |title=CareEdge Group Launches Global IFSC Arm |url=https://economictimes.indiatimes.com/industry/banking/finance/careedge-group-launches-global-ifsc-arm/114087230 |access-date=2025-07-23 |publisher=The Economic Times}}</ref><ref name="HTGlobal">{{cite news |date=2024-10-07 |title=CareEdge Expands to GIFT City |url=https://www.hindustantimes.com/business/careedge-expands-to-gift-city-101727947523695.html |access-date=2025-07-23 |publisher=Hindustan Times}}</ref> * International subsidiaries include: * '''CARE Ratings (Africa) Private Limited''', licensed by the Financial Services Commission (Mauritius) in May 2015 and recognized as an External Credit Assessment Institution (ECAI) by the Bank of Mauritius in May 2016.<ref name="AfricaMoU">{{cite web |date=2024-05-03 |title=APRM and Care Ratings Africa Sign MoU |url=https://www.aprm-au.org/publications/aprm-care-ratings-africa/ |access-date=2025-07-23 |publisher=African Peer Review Mechanism}}</ref><ref name="PlatformAfrica">{{cite web |date=2024-05-01 |title=Care Ratings Africa Signs MoU with APRM |url=https://platformafrica.com/2024/05/01/care-ratings-africa-signs-mou-with-aprm/ |access-date=2025-07-23 |publisher=Platform Africa}}</ref> * '''CARE Ratings South Africa (Pty) Ltd''', operating in South Africa.<ref name="ReutersProfile">{{cite web |title=CARE Ratings Ltd Company Profile |url=https://www.reuters.com/markets/companies/CARR.NS |access-date=2025-07-23 |publisher=Reuters}}</ref> * '''CARE Ratings Nepal Limited''', incorporated in Kathmandu and licensed by the Securities Board of Nepal (SEBON) on 16 November 2017 as the second credit rating agency in Nepal.<ref name="NepalBS">{{cite news |date=2017-11-16 |title=CARE Ratings Nepal Commences Operations |url=https://www.business-standard.com/article/companies/care-ratings-nepal-commences-operations-117111600123_1.html |access-date=2025-07-23 |publisher=Business Standard}}</ref><ref name="NepalET">{{cite news |date=2017-11-16 |title=CARE Ratings Nepal Gets SEBON License |url=https://economictimes.indiatimes.com/industry/banking/finance/care-ratings-nepal-gets-sebon-license/61537230 |access-date=2025-07-23 |publisher=The Economic Times}}</ref>
== Involvement in the Infrastructure Leasing & Financial Services Crisis == CareEdge Group, along with other credit rating agencies such as ICRA Limited, assigned credit ratings to Infrastructure Leasing & Financial Services (IL&FS) and its subsidiaries. During the period of IL&FS's financial difficulties, CareEdge and other agencies maintained high ratings for IL&FS entities, with downgrades occurring after defaults began.<ref name="GrantThornton">{{cite news |date=2019-08-16 |title=IL&FS Audit Report Highlights Management's Role in Misleading Rating Agencies |url=https://www.business-standard.com/article/companies/il-fs-audit-report-highlights-management-s-role-in-misleading-rating-agencies-119081600123_1.html |access-date=2025-07-23 |publisher=Business Standard}}</ref>
An audit conducted by Grant Thornton found that IL&FS management provided incomplete or inaccurate information, which affected the rating processes of CareEdge and other agencies.<ref name="GrantThornton" /> This contributed to challenges in reflecting IL&FS's financial condition in the ratings on time.<ref name="SEBIPenalties">{{cite web |date=2020-06-25 |title=Order in the Matter of IL&FS |url=https://www.sebi.gov.in/enforcement/orders/jun-2020/order-in-the-matter-of-il-fs_47030.html |access-date=2025-07-23 |publisher=Securities and Exchange Board of India}}</ref>
The Securities and Exchange Board of India (SEBI) reviewed the rating processes and imposed penalties on CareEdge and ICRA for procedural lapses identified in connection with the IL&FS matter.<ref name="SEBIPenalties" /> The issuer-pays model, used by CareEdge and other rating agencies, has been noted by analysts as a potential source of conflicts of interest in the credit rating industry.<ref name="IssuerPays">{{cite web |date=2023-07-03 |title=How IL&FS Crisis Led to Panic in the Indian Domestic Market |url=https://groww.in/p/ilfs-crisis |access-date=2025-07-23 |publisher=Groww}}</ref>
An independent inquiry into the leadership of Rajesh Mokashi, who served as CEO of CareEdge during the IL&FS events, found no evidence of wrongdoing on his part.<ref name="MokashiInquiry">{{cite news |date=2020-03-15 |title=Independent Inquiry Clears Former CareEdge CEO |url= |publisher=Business Standard}}</ref> Following these events, CareEdge appointed Ajay Mahanjan as CEO, and in 2022, Mehul Pandya was promoted internally to lead the group.<ref name="CEOLeadership">{{cite web |date=2022-06-10 |title=CareEdge Group Leadership Changes |url= |publisher=CareEdge Group}}</ref><ref>{{Cite web |title=SEBON |url=https://www.sebon.gov.np/ |access-date=2024-06-26 |website=www.sebon.gov.np}}</ref><ref>{{Cite web |title=Care Rating Nepal gets Sebon's nod |url=https://kathmandupost.com/money/2017/11/23/care-rating-nepal-gets-sebons-nod |access-date=2024-06-26 |website=kathmandupost.com |language=English}}</ref><ref>{{Cite web |date=19 November 2017 |title=Care Ratings Nepal receives Operating License from SEBON |url=http://www.newbusinessage.com/Articles/view/6931 |access-date=2024-06-26 |website=www.newbusinessage.com |language=en |archive-date=26 June 2024 |archive-url=https://web.archive.org/web/20240626061829/http://www.newbusinessage.com/Articles/view/6931 |url-status=dead }}</ref>
==References== {{Reflist}}
==External links== * [https://www.careratings.com/ CareEdge Group]
Category:Finance Category:Financial services companies based in Mumbai Category:Credit rating agencies in India Category:1993 establishments in India Category:Financial services companies established in 1993 Category:Companies listed on the National Stock Exchange of India Category:Companies listed on the Bombay Stock Exchange