ICRA Lanka Limited (ICRA Lanka)is a credit rating agency licensed by the Securities and Exchange Commission of Sri Lanka (SEC). ICRA Lanka is a fully owned subsidiary of ICRA Limited (ICRA) of India, a subsidiary of Moody’s Investors service. The company was granted license by the SEC in May 2011.
ICRA Limited, the immediate parent, was set up in 1991 by leading financial/investment institutions, commercial banks and financial services companies as an independent and professional Investment Information and Credit Rating Agency. Today, ICRA and its subsidiaries together form the ICRA Group of Companies (Group ICRA). ICRA is a Public Limited Company, with its shares listed on the Bombay Stock Exchange and the National Stock Exchange.
The international Credit Rating Agency Moody’s Investors Service is ICRA’s majority shareholder. The participation of Moody’s is supported by a Technical Services Agreement, which entails Moody’s providing certain high-value technical services to ICRA. Specifically, the agreement is aimed at benefiting ICRA’s in-house research capabilities, and providing it with access to Moody’s global research base. The agreement also envisages Moody’s conducting regular training and business seminars for ICRA analysts on various subjects to help them better understand and manage concepts and issues relating to the development of the capital markets. Besides this formal training programme, the agreement provides for Moody’s advising ICRA on Rating-products strategy and the Ratings business in general.
ICRA Lanka in return is supported by a Technical Services agreement with ICRA, wherein the parent company provides operational support and resources. The methodologies currently used by ICRA Lanka are those provided by ICRA. The technical services arrangement ensures that these methodologies are reviewed and revised to meet current operating requirements. Operationally, analysts of ICRA Lanka report to respective sector heads of the parent company. The rating process is thus driven by the expertise and experience of the parent company and the Group. Currently the rating committee of ICRA Lanka is composed of Senior Executives from ICRA.