Date:10/05/2005 URL: http://www.thehindu.com/2005/05/10/stories/2005051003111900.htm

Business

S&P becomes major shareholder in Crisil

Special Correspondent

To leverage opportunities in India and abroad

STANDARD-BEARER: The Managing Director and CEO of Crisil, R. Ravimohan, with the President of Standard & Poor's, Kathleen A. Corbet, at a press conference in Mumbai on Monday. — Photo: Paul Noronha

MUMBAI: Standard & Poor's, world's leading rating agency, on Monday, announced that it has become the majority shareholder of India's biggest rating agency, Crisil Limited, with a holding of 58.5 per cent.

During its recent tender offer, Standard & Poor's has received acceptances for 3,120,948 shares representing 49.07 per cent of Crisil.

"Upon completion of transfer formalities of these shares, and when combined with its existing interest, Standard & Poor's will now own 3,720,948 shares or 58.5 per cent of Crisil.''

Standard & Poor's is a division of McGraw-Hill Companies, a leading global information services provider. McGraw-Hill companies, on behalf of its Standard & Poor's division, had made a voluntary conditional open offer to the shareholders of Crisil in February 2005.

"We are very pleased at having achieved our stated goal of becoming majority shareholder, allowing us to integrate Crisil's operations with Standard & Poor's and to fully leverage opportunities both in India and abroad, creating additional value for all our clients", said Kathleen A. Corbet, President of Standard & Poor's, here, on Monday. "Crisil, with its talented analytical pool and strong management, will play an integral role in the Standard & Poor's and The McGraw-Hill Companies global network", she added.

Ms. Corbet also said that though they are working to integrate their operations, there are no specific changes in the composition of board of directors.

Crisil and Standard & Poor's have first signed an affiliation agreement in 1996.

The relationship was further strengthened in 1997 when Standard & Poor's acquired its initial equity stake in Crisil. Standard & Poor's has contributed to Crisil's development by sharing some of its rating methodologies and processes and providing training to Crisil personnel.

In recent years, Standard & Poor's commissioned Crisil in an increasing number of global analytical projects that have deepened the relationship and contributed to Crisil's growth and diversification.