Nagpur: The Vidarbha Industries Association MSME Forum recently organized a session on “Credit Ratings as a Catalyst for MSME Growth and Profitability” at the Vidarbha Industries Association Auditorium, Nagpur.
Dr Bhavesh Sampat, Associate Director, CARE Ratings Limited, Mumbai, conducted the session on credit rating methodology.
Drawing on his extensive experience in financial markets and risk assessment, Dr. Sampat outlined the structured methodology followed by CARE Ratings to evaluate the creditworthiness of businesses.
He explained that the process considers industry and economic risks, internal strengths, business operations, financial position, and management capabilities, which collectively shape a company’s credit profile.
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Highlighting CARE Ratings’ international presence in South Africa, Nepal, Mauritius, and other regions, Dr. Sampat noted the organization’s market capitalization of nearly ₹5,530 crore, reinforcing its leadership in the credit rating industry. He emphasized that credit ratings not only help companies secure financing but also serve as a benchmark of trust for lenders, investors, and stakeholders.
Dr. Sampat also underlined the importance of transparent and credible ratings in today’s competitive market, stating that they play a crucial role in building corporate reputation and ensuring sustainable growth. The interactive session concluded with a Q&A, during which he addressed questions from entrepreneurs and industry participants on rating benefits, risk classification, and best practices for financial discipline.
CA Neha Kandalkar, Senior Manager – Credit, Punjab National Bank, Nagpur, led another session on “Credit Risk Ratings as a Catalyst for MSME Growth & Profitability.” She explained that from April 1, 2025, several growing businesses will come under the MSME category, giving them easier access to credit, subsidies, and government scheme benefits. She stressed that credit risk ratings are vital in determining borrowing costs, risk exposure, and overall financial credibility.
Vidarbha Industries Association: Significance of Credit Ratings for Business Growth
She further highlighted the importance of investment-grade ratings (B2 and above), while noting that ratings below this level (B3 and C categories) elevate risk perception and financing costs.
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CA Kandalkar elaborated on evaluation parameters such as transparency in accounting, inventory quality, debtor realizability, competitive position, infrastructure, and service efficiency. She also spoke on key financial ratios, early warning signals (EWS), and borrowers’ rights in cases of rating downgrades.
Earlier, CA Girish Deodhar, Chairman of VIA MSME Forum, delivered the opening remarks and explained the significance of credit ratings for business growth. CA Nitin Alshi, Convener of Vidarbha Industries Association MSME Forum, introduced the guest speakers.
CA Naresh Jakhotia, Vice President – Vidarbha Industries Association, welcomed the guest speakers with floral bouquets and mementos. He highlighted the essential role of credit rating agencies in industrial development and underlined how effective credit ratings enhance business credibility, improve access to finance, and promote sustainable growth.
The session concluded with a vote of thanks delivered by CA Nitin Agrawal, Joint Secretary – Vidarbha Industries Association.
Also present at the event were CA Nishtha Khandelwal, Manisha Agrawal, and industry representatives from Truform Engineering, Perfect Solutions, and Kapilansh Dhatu, among others.
