ICRA enters Kuwait, might foray into Oman

Making a foray into Kuwait, credit rating agency ICRA on Wednesday said it was in talks with other Arab nations for extending the technical expertise and was open to picking up stakes in rating agencies in those countries, which allowed foreign participation.

Announcing the first global rating jointly done with the Kuwait-based Credit Rating and Collection Company (CRC), ICRA managing director P K Chodhury said the MoU with CRC, promoted by Al-Ahia group, would help in setting up a rating agency in Kuwait, training the personnel and undertake 'issuer and line of credit' ratings.

ICRA-CRC gave a high safety 'AA' issuer rating to Mobile Telecommunications Company, considering that Kuwait Investment Authority, an independent legal entity under the ministry of finance of that country, was one of the main shareholders.

Commenting on the MoU with CRC, Choudhury said, "We found potential in Gulf countries as there was no domestic credit rating agencies and we will help them in setting up such an agency."

Stating that around five countries had evinced interest in having technical and advisory alliance with ICRA, he said talks were in the advanced stages with Sultanate of Oman.

Though the tie-up with CRC envisaged a three-year contract for technical assistance, Choudhury said ICRA was open to take equity in credit rating agencies in countries that allowed the foreign investment and had the profit potential.

"We are not ruling out that (picking up equity stake) if the respective country's law permits and if there is potential for profit making," he said.