Mumbai, Jun 15 (IANS): Rating agencies in the country have come together to form an association to push the agenda of enhancing rating standards and help build trust with investors and issuers.

Accordingly, Acuite Ratings & Research Limited and CARE Ratings Limited have founded the "Association of Indian Rating Agencies or AIRA" that has been which incorporated as a section 8 (not-for-profit) company. AIRA is also expected to work closely with the regulator and government for the development of debt market.

Currently, there are seven credit ratings agencies registered with SEBI that cumulatively have ratings coverage on over 57,000 entities. However, all this while there was no association to collectively represent an industry that is in existence for over three decades in India.

"Ratings have become central to informed decision making in the financial world. Through this Association, we aim to engage extensively and constructively with all stakeholders, including the regulators and policy makers, for the orderly development of debt market with the increased usage of credit rating," said Ajay Mahajan, Managing Director & CEO, CARE Ratings Limited.

While Acuite Ratings & Research Limited and CARE Ratings Limited are the founding members of the association, all rating agencies have invited to be a part of the association.

The existing members have already initiated the process of inducting two more rating agencies and expect to complete the process soon. AIRA has also written to the other three rating agencies welcoming them to join the association as shareholders-cum-members.

Sankar Chakraborti, Group CEO & Executive Director, Acuite Ratings & Research Limited said, "The association will work with all stakeholders to enhance availability & flow of information needed for ratings and create awareness of best practices adopted by the industry. We believe AIRA will play the role of a bridge between all stakeholders."