Crisil buys 9 per cent stake in Care, its arch rival

MUMBAI: Rating company Crisil today acquired close to 9% in its arch rival, Care, a rating company owned by various domestic and institutional investors.

Senior official said that Crisil has acquired stake from Canara Bank, who wanted to exit the rating company to shore up its capital. The deal is said to be valued at Rs 400 crore, said bank officials who did not want to be named.

CRISIL is owned by international rating company Standard & Poor's while Care was originally promoted by IDBI.

This deal could signal the first sign of consolidation in the credit ratings industry which has about five players now registered with markets regulator SEBI.

Crisil has acquired 26 lakh shares or 8.9% stake in Care. Canara Bank was the largest shareholder after Life Insurance Corporation, which has 10% equity, in Care.