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Paramvir Singh
Mumbai, June 21: International rating agency Fitch IBCA is expected to pick up close to 10 per cent stake in Credit Analysis and Research (Care), the rating agency promoted by Industrial Development Bank of India (IDBI).
However, the equity tieup will be preceeded by a technical alliance between the two agencies. A "cooperation agreement" to this effect will be signed on June 24 in Mumbai. To start with, the technical tie-up will cover training and marketing, Care sources said.
Fitch IBCA is the world's third-largest credit-rating agency -- after Moody's and Standard & Poor's -- formed by the merger of IBCA of London and Fitch Investors Service, LP of New York.
At present, IDBI holds 26 per cent stake in Care, followed by Canara Bank and Unit Trust of India. It could not be ascertained whether it would expand its equity base (Rs 8 crore) or any of its 15 shareholders would divest stakes to accommodate the new "partner". "We will start the relationship with a technical tieup. Eventually Fitch IBCA willbe offered an equity stake," sources said.
Other two rating agencies operating in the country, Crisil and Icra, have equity tieups with S&P and Moody's.
Moody's acquired around 11 per cent stake in Icra last year while S&P had acquired the 9.68 per cent Asian Development Bank (ADB) stake in Crisil in March 1997.
This was the first case where S&P has picked up a minority stake in any rating agency. Crisil has been promoted by ICICI and has UTI, LIC and GIC as its principal shareholders. The Industrial Finance Corporation of India is the principal promoter of Icra.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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