In India, credit ratings for bonds and commercial paper are issued by SEBI-registered Credit Rating Agencies (CRAs): CRISIL (S&P affiliate), ICRA (Moody's affiliate), CARE Ratings, Brickwork Ratings, and Acuité Ratings.

Rating Scale (Long-term)

  • AAA: Highest safety (e.g., AAA-rated PSU bonds)
  • AA: High safety
  • A: Adequate safety
  • BBB: Moderate safety (investment grade boundary)
  • BB and below: Speculative grade ('junk')
  • D: Default

SEBI regulations require debt mutual funds to disclose holdings by credit rating. Many funds have restrictions on below-investment-grade holdings.