MichalKohn at 01:56, 28 March 2026

2026-03-28T01:56:19Z

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{{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}} {{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 Chief executive officer|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> Sachin Gupta ([[Executive Director|ED]]) Revati Kasture ([[Executive Director|ED]])
| services = Credit Ratings, Analytics, Consulting, Research, ESG
| revenue = {{increase}} {{INRConvert|251|c}} (December 2023)<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|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]]

CareEdge Group - Revision history

MichalKohn at 01:56, 28 March 2026