CareEdge Global Enters Global Sovereign Ratings Sphere

CareEdge Global IFSC Ltd, an arm of CARE Ratings Ltd, has made its entry into the Global Scale Ratings space, marking a milestone by becoming the first Indian credit agency to rate global economies. This initiative aims to offer long-term foreign currency ratings with a transparent methodology benefiting both developed and emerging markets.

CareEdge Global IFSC Ltd, a subsidiary of CARE Ratings Ltd, has officially launched its Sovereign Ratings for 39 countries, establishing its presence in the competitive Global Scale Ratings arena. With this launch, CareEdge becomes the premier Indian credit rating agency to undertake assessments of global economies, providing long-term foreign currency (LTFC) ratings.

In this first release, CareEdge assigned India a BBB+ rating, underscoring the nation's robust post-pandemic recovery aided by significant infrastructure investments. The assessment anticipates India's GDP growth to range between 6.5-7 per cent in forthcoming years, alongside a gradual decrease in government debt to 78 per cent of GDP by FY30 and further to 73.5 per cent by FY35.

Despite these strengths, challenges such as high government debt levels, weak debt affordability, and susceptibility to global oil price fluctuations due to heavy oil import dependency were also noted. Mehul Pandya, Managing Director & Group CEO of CareEdge, highlighted the firm's aspiration to evolve into a global knowledge-based entity, particularly emphasizing the importance of transparency in sovereign rating methodologies.

Further reflecting on India's growing economic prominence, Pandya emphasized that an Indian company exploring this field is both timely and propitious. In addition to India, ratings were assigned to 38 countries globally, with top ratings awarded to Germany, the Netherlands, Singapore, and Sweden, all receiving AAA marks. Other nations with notable ratings included Australia, Canada, and the USA with AA+ status, while France, Japan, and the UK were rated AA-. Meanwhile, China received an A rating.

Revati Kasture, Executive Director at CareEdge, explained that their robust methodology promotes fairness, treating developed and emerging economies equally, leveraging consistent thresholds. The ratings aim to support investors, enhancing the diversity of perspectives on global economies.

The launch event was held at GIFT City, Gandhinagar, and was graced by esteemed figures like K.V. Kamath, Ashishkumar Chauhan (MD & CEO, NSE), and Sanjeev Sanyal (Member, EAC-PM).

(With inputs from agencies.)