IA MSME Forum organised a session on“Credit Ratings as a Catalyst for MSME Growth and Profitability”
IA MSME Forum organised a session on“Credit Ratings as a Catalyst for MSME Growth and Profitability”
Nagpur, 26 September 2025
Vidarbha Industries Association (VIA) MSME Forum organised a session on “Credit Ratings as a Catalyst for MSME Growth and Profitability” recently at VIA Auditorium, Nagpur.
Dr Bhavesh Sampat, Associate Director, CARE Ratings Limited, Mumbai conducted the session on Credit Rating Methodology. Dr Sampat, with his vast expertise in financial markets and risk assessment, elaborated on the structured methodology followed by CARE Ratings in evaluating creditworthiness of businesses. He explained that the rating process encompasses industry and economic risks, internal strengths, business operations, financial position, and management capabilities, all of which together determine a company’s credit profile. Highlighting CARE Ratings’ global presence through its subsidiaries in South Africa, Nepal, Mauritius, and other regions, he noted the organization’s market cap of nearly Rs. 5,530 crore, underscoring its leadership in credit rating services. He further emphasized how credit ratings not only aid companies in accessing finance but also act as a benchmark of trust for lenders, investors, and stakeholders.
Dr Sampat stressed that in today’s competitive environment, a transparent and credible rating plays a crucial role in building corporate reputation and ensuring sustainable growth. The interactive session concluded with a Q&A, where he addressed queries from entrepreneurs and industry members on rating benefits, risk classification, and best practices for financial discipline.
CA Neha Kandalkar, Senior Manager – Credit, Punjab National Bank, Nagpur conducted a session on “Credit Risk Ratings as a Catalyst for MSME Growth & Profitability.” She explained that with effect from 1st April 2025, several growing businesses will come under the MSME umbrella, enabling easier access to credit, subsidies, and benefits of government schemes. She emphasized that credit risk ratings play a vital role in determining the cost of credit, risk exposure, and the borrower’s overall financial credibility.
Highlighting the importance of investment-grade ratings (B2 and above), she pointed out how ratings below the threshold (B3 and C categories) increase the risk perception and financing costs. She elaborated on the evaluation process covering transparency in accounting, quality of inventory, debtor realisability, competitive positioning, infrastructure, market-related factors, and service efficiency.
CA Kandalkar also shared insights on ratios influencing risk ratings and the significance of early warning signals (EWS) in monitoring portfolio quality. She urged MSMEs to understand their rights as borrowers, particularly in disclosure of reasons for credit rating downgrades.
Earlier, CA Girish Deodhar, Chairman of VIA MSME Forum, made the opening remarks and explained the concept of credit ratings while underlining their significance for business growth. CA Nitin Alshi, Convener of VIA MSME Forum, introduced the guest speakers.
CA Naresh Jakhotia, Vice President – VIA, extended a warm welcome to the guest speakers with floral bouquets and mementos. In his welcome address, he highlighted that credit rating agencies play a vital role in the growth and development of industries. He further emphasized that the session was designed to educate MSMEs and entrepreneurs on how effective credit ratings can enhance business credibility, improve access to finance, and support long-term sustainable growth.
CA Nitin Agrawal, Jt Secretary – VIA summed up the session and proposed a vote of thanks.
Prominently present were CA Nishtha Khandelwal, Manisha Agrawal, representatives of industries like Truform Engineering, Perfect Solutions, Kapilansh Dhatu, etc.
The session was attended by entrepreneurs & MSME stakeholders including members of the Association.
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