John Rutherfurd Jr, president and chief executive officer of the US-based Moody's Corporation, has joined the Icra board as a director.
This follows global rating agency Moody's Investor Services picking up additional 9 per stake in Icra, raising its holding in the domestic rater to 21.15 per cent from 12.15 per cent. With this, Moody's has become the largest stake holder in Icra.
Moody's bought out the stake from IFCI, the principal promoter of Icra, in September at an undisclosed amount.
Post-selloff, IFCI's stake in Icra came down to 21.13 per cent. The State Bank of India is the third largest stake holder in Icra with 11.69 per cent stake.
Moody's holds stake in Icra through a special purpose vehicle (SPV) Moody's Investment Co India (Pvt) Ltd.
"We want to work closely with Icra and enhanced co-operation will be easier with larger shareholding," Rutherfurd said. He, however, refused to commit on further increasing the stake at this point. "It all depends upon how the relationship develops over the time," he pointed out.
D N Ghosh, chairman, Icra, said, "The increase in Moody's stake is a recognition of the fact that they are taking serious interest in the company."
Rutherfurd said that Icra and Moody's will extend co-operation both inside and outside the country. He said, "There were three areas where we have enough global experience and can help Icra. These are mutual fund, structured finance and corporate governance."
He added that Moody's will take Icra's help in certain rating assignments and on different rating committees. Both the firms will work together for developing new products and improve 'investor awareness' in the domestic market.
Other stake holders in Icra include Life Insurance Corporation, Unit Trust of India, Punjab National Bank, General Insurance Corporation, Union Bank of India, Central Bank of India, Allahabad Bank, United Bank of India, Indian Bank, UCO Bank, Canara Bank, Andhra Bank, Exim Bank, Housing Development Financial Corporation, Infrastructure Leasing & Financial Services Ltd, Vysya Bank, Indian Overseas Bank and Oriental Bank of Commerce.
