Crisil ties up with Sidbi to rate SSIs

New Delhi, Sept 12: Credit rating agency Crisil has tied up with Small Industries Development Bank of India (Sidbi) to rate companies belonging to small scale industries (SSI) sector in a bid to increase credit flow to the SSI sector.

“We have extended support to Crisil to rate SSI units. The bank would subsidise 50 per cent of the rating costs or a maximum Rs 10,000,” Sidbi chairman, PB Nimbalkar, told PTI. This is perhaps the first time when a rating agency would be grading small companies on the basis of their performance and capacity utilisation.

The three rating agencies Crisil, CARE and Icra had so far rated financial instruments of bigger companies.

Mr Nimbalkar said at least 100 SSIs would be covered in the first phase of the project within six months.

“This is part of the pilot project that Sidbi and Crisil have agreed to work on.

‘‘The exercise would be made extensive depending on the success of the project,” Mr Nimbalkar said.

The rating would enable SSI units to get bank credit easily, impart transparency in their operations and facilitate e-commerce activity in the sector, the Sidbi chief said. “SSI units will stand to gain by getting themselves rated by Crisil as this would act as an independent credit opinion and eventually strengthen the debt raising capacity of the firms,” he said.

-- PTI