SEBI Expands Horizons for Credit Rating Agencies Beyond Traditional Debt

SEBI-registered credit rating agencies assigned ratings to 725 new issuances during the 2025-26 period [1]. Within this wave of activity, CRISIL secured a dominant market position by accounting for nearly half of all fresh ratings [1]. Furthermore, data as of March 31, 2026, reveals that 88.4% of outstanding ratings were classified as investment grade, showing a notable improvement compared to the previous year [1]. Alongside this volume, regulatory authorities have opened up new business avenues for these agencies outside the scope of traditional debt ratings [1].

The expansion into non-traditional avenues diversifies the operational scope for credit rating agencies, reducing their heavy reliance on standard debt instruments. The capability of agencies like CRISIL to capture nearly half of the fresh issuance market highlights high concentration and strong brand preference among issuers. Additionally, the high concentration of investment-grade ratings—reaching 88.4% as of March 31, 2026—demonstrates overall stability in the underlying rated asset pool [1].

Investors tracking the credit rating sector can observe evolving revenue streams as agencies step into new business areas authorized by SEBI [1]. The robust proportion of investment-grade outstanding ratings (88.4%) suggests a healthier overall portfolio profile coming out of the 2025-26 period [1]. Market participants must evaluate how effectively individual rating agencies capitalize on these newly opened regulatory avenues versus their traditional core operations.

While expansion into new business avenues creates growth vectors, it also exposes agencies to execution risks associated with unproven non-traditional service lines. Heavy market share concentration by a single player, such as CRISIL accounting for nearly half of the 725 new issuances, highlights competitive asymmetries in the sector [1]. Furthermore, credit rating portfolios remain sensitive to macroeconomic shifts that could potentially influence the 88.4% investment-grade ratio observed at the close of March 2026 [1].

• SEBI has opened new business avenues for credit rating agencies beyond traditional debt ratings [1].
• Rating agencies handled 725 new issuances during 2025-26 [1].
• CRISIL accounted for nearly half of all fresh ratings issued in 2025-26 [1].
• Investment-grade ratings stood at 88.4% of all outstanding ratings as of March 31, 2026, marking an improvement over the previous year [1].

• CRISIL

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

### What share of fresh ratings did CRISIL capture? CRISIL accounted for nearly half of all fresh ratings during 2025-26 [1].

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

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