Download Rating firm ARC to start ops from India

Published Date: 07 Nov 2014
Rating firm ARC to start ops from India
The agency is meeting finance ministry officials. It will also be meeting corporates, academicians and
think-tanks
Mumbai: Newly launched ARC Ratings on Thursday said it will kick off its sovereign operations with
assigning ratings to India over the next four to six weeks.
India's Care Ratings holds 20 per cent stake in the new global credit rating agency, formally launched in
January this year. The London-based ARC has five founding partners - ARC Ratings of Portuguese,
Care, Global Credit Ratings from Africa, Malaysian Rating Corp and SR Ratings of Brazil.
"We are doing our sovereign analysis on India because it is the biggest market for us and it is going
through critical times. We hope to kick off our rating assignment with India over the next four to six
weeks," ARC Ratings Managing Director and Chief Executive Alexandra Mousavizadeh told PTI.
The agency is gathering views in the country and has already met finance ministry officials in Delhi and
will be meeting RBI representatives this week. It will also be meeting corporates, academicians and
think-tanks
"There is a lot of optimism from business community that is expecting certain changes to happen (in
India). But, there is caution as people are closely watching implementation of promises made by the
new Government," she said.
Mousavizadeh felt there is an urgent need for Asia's third largest economy to get its investment grade
rating improved as it is quite low.
About the methodologies ARC would be using while assigning sovereign ratings, Mousavizadeh said
their approach is to look at rating metrics in a much more granular manner.​
—PTI
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UK-based ARC Ratings to soon
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ARC Ratings
MUMBAI: A new global ratings firm with a strong India
connect will soon mark its presence in the country. ARC
Ratings, in which India's Care Ratings is the lead promoter
with a 21% stake, will soon start rating Indian firms.
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IN-DEPTH COVERAGE
Firms
Fitch Ratings
The company makes its entry into the Indian market as the
outlook on the economy is turning upbeat. ARC Ratings is
expected to announce its first India sovereign rating within a
month or so. India is currently at the lowest rung of
investment grade rating. "We will be launching India's
sovereign rating and have been in talks with officials in the
finance ministry as well as RBI among others," said
managing director Alexandra Mousavizadeh of the UKheadquartered ratings firm. It will start offering ratings on
global debt issuances by Indian firms as well, she said.
(ARC Ratings is expected…)
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With three big global companies in the business, a fourth will add to competition. Though sovereign ratings
are unsolicited and don't earn any revenue for ratings firms, those for corporate issuances come for a fee.
"We will price our products competitively," Mousavizadeh said.
Sovereign ratings and ratings for international offerings of Indian firms are currently provided by S&P,
Moody's and Fitch Ratings, all of which have a stake in Indian subsidiaries.
Other promoters in ARC Ratings are rating firms based in various emerging markets — Malaysia, Brazil and
South Africa among others. Attempts are on to make it a BRICS entity.
"We are in talks with local ratings firm in Russia and China and trying to get them to invest in the company,"
said a senior Care Ratings' official.
ARC has a presence in about 22 countries including Africa, Latin America and Europe. It's registered with
the European Securities Market Authority.
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New global rating firm ARC to start ops with
India grading
Press Trust of India | Mumbai November 06, 2014 Last Updated at 19:40 IST
Newly launched ARC Ratings today said it will kick off its sovereign operations with assigning
ratings to India over the next four to six weeks.
India's Care Ratings holds 20 per cent stake in the new global credit rating agency, formally launched
in January this year. The London-based ARC has five founding partners - ARC Ratings of
Portuguese, Care, Global Credit Ratings from Africa, Malaysian Rating Corp and SR Ratings of
Brazil.
"We are doing our sovereign analysis on India because it is the biggest market for us and it is going
through critical times. We hope to kick off our rating assignment with India over the next four to six
weeks," ARC Ratings Managing Director and Chief Executive Alexandra Mousavizadeh told PTI.
The agency is gathering views in the country and has already met Finance Ministry officials in Delhi
and will be meeting Reserve Bank representatives this week. It will also be meeting corporates,
academicians and think-tanks.
"There is a lot of optimism from business community that is expecting certain changes to happen (in
India). But, there is caution as people are closely watching implementation of promises made by the
new Government," she said.
Mousavizadeh felt there is an urgent need for Asia's third largest economy to get its investment grade
rating improved as it is quite low.
About the methodologies ARC would be using while assigning sovereign ratings, Mousavizadeh said
their approach is to look at rating metrics in a much more granular manner and take into consideration
risk factors which other international agencies usually ignore.
"S&P, Fitch, Moody's (the big three on the global sovereign ratings scene, who have BBB- ratings on
India) have one approach. They look at growth which is determined by GDP which is an old data set;
they look at economic structure which is determined by GDP per capita.
"We believe these data prints are static, old, backward looking and don't say anything about the
dynamism of an economy," explained Mousavizadeh, who spent 11 years at Moody's, handling their
Africa sovereign rating portfolio.
"We have a whole balance-sheet approach. We are looking at internal balances which are the fiscal,
corporates and banks and contingent liabilities. We are taking more risks that haven't been taken into
account."
After India, ARC plans to assign sovereign ratings to Malaysia and Indonesia by December-end and
Nigeria later.
Published on mydigitalfc.com (http://www.mydigitalfc.com)
New global rating firm ARC to start ops with India grading
By :PTI
Nov 06 2014
Newly launched ARC Ratings today said it will kick off its sovereign operations with
assigning ratings to India over the next four to six weeks.
India's Care Ratings holds 20 per cent stake in the new global credit rating agency,
formally launched in January this year. The London-based ARC has five founding partners
- ARC Ratings of Portuguese, Care, Global Credit Ratings from Africa, Malaysian Rating
Corp and SR Ratings of Brazil.
"We are doing our sovereign analysis on India because it is the biggest market for us and
it is going through critical times. We hope to kick off our rating assignment with India over
the next four to six weeks," ARC Ratings Managing Director and Chief Executive
Alexandra Mousavizadeh told PTI.
The agency is gathering views in the country and has already met Finance Ministry
officials in Delhi and will be meeting Reserve Bank representatives this week. It will also
be meeting corporates, academicians and think-tanks.
"There is a lot of optimism from business community that is expecting certain changes to
happen (in India). But, there is caution as people are closely watching implementation of
promises made by the new Government," she said.
Mousavizadeh felt there is an urgent need for Asia's third largest economy to get its
investment grade rating improved as it is quite low.
About the methodologies ARC would be using while assigning sovereign ratings,
Mousavizadeh said their approach is to look at rating metrics in a much more granular
manner and take into consideration risk factors which other international agencies usually
ignore.
"S&P, Fitch, Moody's (the big three on the global sovereign ratings scene, who have BBBratings on India) have one approach. They look at growth which is determined by GDP
which is an old data set; they look at economic structure which is determined by GDP per
capita.
"We believe these data prints are static, old, backward looking and don't say anything
about the dynamism of an economy," explained Mousavizadeh, who spent 11 years at
Moody's, handling their Africa sovereign rating portfolio.
"We have a whole balance-sheet approach. We are looking at internal balances which are
the fiscal, corporates and banks and contingent liabilities. We are taking more risks that
haven't been taken into account."
After India, ARC plans to assign sovereign ratings to Malaysia and Indonesia by
December-end and Nigeria later.
© 2011 Financial Chronicle, All rights reserved
Source URL: http://www.mydigitalfc.com/news/new-global-rating-firm-arc-start-ops-india-grading-687
ARC Ratings to provide sovereign rating on India
K. R. Srivats
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New Delhi, Nov 5:
ARC Ratings, an international credit rating agency, will by this month end or early December firm up its sovereign
rating of India, its Managing Director and Chief Alexandra Mousavizadeh has said.
It will join select group of international rating agencies including Standard & Poor’s, Moody’s Investors Service who are
now providing a sovereign rating of India.
India will be the first country where Europe–based ARC Ratings will provide a sovereign rating, Alexandra said.
For the sovereign rating, ARC Ratings will use the rating scale currently used by S&P, Alexandra told Business Line
here on Wednesday.
This will ensure that users don’t need to revamp the ratings
Plans are afoot to come out with a financial stability rating (for India) be February next year.
Malaysia and Indonesia could be the next countries where it plans to provide a sovereign rating, she said.
ARC Ratings is also looking to provide sovereign ratings for several African countries.
India-based rating agency Credit Analysis and Research Ltd (CARE) is one of the founding partners of ARC Ratings
and has 20 percent equity interest in this international rating agency. .
Top brass of ARC Ratings including Alexandra are currently in India to hold discussions with the Finance Ministry and
the Reserve Bank of India on their sovereign ratings methodology.
ARC TO BE DIFFERENT
Asked how ARC Ratings plans to differentiate itself from the Big three credit rating agencies on the sovereign ratings
front, Alexandra said there will not be an over-emphasis on GDP per capita.
Over emphasis on GDP per capita –practised by other competitors—was not the right approach, she said.
ARC Ratings sovereign methodology will among other issues factor in crucial aspect of contingent liabilities, she added.
[email protected]
(This article was published on November 5, 2014)
Printable version | Nov 13, 2014 6:32:30 PM | http://www.thehindubusinessline.com/industry-and-economy/banking/arc-ratings/article6568060.ece © The
Hindu Business Line