SEBI Expands Horizons for Credit Rating Agencies Beyond Traditional Debt

SEBI-registered credit rating agencies experienced an active fiscal year in 2025-26, assigning ratings to 725 new issuances [1]. Within this landscape, CRISIL secured a dominant market position by accounting for nearly half of all fresh ratings during the period [1]. Furthermore, credit quality showed robust health as of March 31, 2026, with 88.4% of outstanding ratings falling into the investment-grade category—representing an improvement over the previous year [1]. Alongside these volume and quality metrics, regulatory changes have introduced fresh business avenues for these agencies outside the scope of traditional debt ratings [1].

For years, credit rating agencies relied heavily on traditional debt instrument evaluations as their primary revenue engine. By opening new business avenues, regulators are enabling these institutions to diversify their operational models. The concentration of market share—such as CRISIL capturing nearly half of the fresh ratings for 725 new issuances—highlights how established players are positioned to capture expanding deal flows. Simultaneously, the high concentration of investment-grade ratings (88.4% as of March 31, 2026) demonstrates underlying strength in the rated issuer universe [1].

Investors tracking the credit rating sector can evaluate how regulatory-backed diversification away from core debt ratings affects top-line stability. Companies leading in volume capture—such as CRISIL, which handled nearly half of the 725 new issuances in 2025-26—benefit from scale [1]. Enhanced business avenues could alter revenue mixes, potentially reducing cyclicality tied strictly to traditional debt issuances [1].

While new business avenues offer growth vectors, reliance on regulatory shifts introduces policy execution risks. Operational performance remains closely tied to broader corporate issuance volumes and macroeconomic conditions that dictate debt and non-debt fundraising [1].

• SEBI-registered rating agencies evaluated 725 new issuances during the 2025-26 period [1].
• CRISIL accounted for nearly half of all fresh ratings [1].
• Investment-grade ratings reached 88.4% of outstanding ratings as of March 31, 2026, improving year-over-year [1].
• Regulatory changes have expanded operations beyond traditional debt ratings [1].

• CRISIL

### How many new issuances did credit rating agencies evaluate in 2025-26? SEBI-registered credit rating agencies assigned ratings to 725 new issuances during 2025-26 [1].

### What proportion of new issuances did CRISIL handle? CRISIL accounted for nearly half of all fresh ratings during the 2025-26 period [1].

### What was the percentage of investment-grade ratings as of March 31, 2026? As of March 31, 2026, 88.4% of outstanding ratings were investment grade, marking an improvement over the previous year [1].

### What change has SEBI introduced for credit rating agencies? SEBI has opened new business avenues for credit rating agencies beyond traditional debt ratings [1].