← GlossaryRates
Credit Rating
A credit rating is an independent assessment of a borrower’s ability to repay debt, issued by agencies such as CRISIL, ICRA and CARE in India, or S&P, Moody’s and Fitch globally. Ratings run from AAA, the safest, downward.
Why It Matters
A lower rating means a borrower must pay higher interest to convince lenders to take the risk.
In India
In 2025, S&P upgraded India’s sovereign rating to BBB, its first upgrade in 18 years, which can lower borrowing costs for the government and Indian companies abroad.
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