Market 'downgrades' credit rating agencies, shares dive up to 57% in one year

Corporate performances, liquidity profile and earnings are majorly tracked by the credit rating agencies (CRAs) to direct market participants. These agencies police the markets and scout for companies piled up with bad debt and reputation. However, in the last one year, share prices of the three major listed credit rating agencies in India have reported a substantial downfall.

In last one year, ICRA has plunged nearly 29 percent, CRISIL declined 27 percent and CARE Ratings fell 57 percent. While in comparison, the benchmark equity indices the BSE Sensex and the Nifty50 only fell 4 percent and 7 percent, respectively, during the same time period.

In the last few months, there has been negative news surfacing around these agencies, when the top executives of two agencies were asked to step down.