"We have already done a few assignments for Japanese firms like Mitsubishi, Marubeni and large trading companies like Sumitomo," Icra general manager Amol Gogna said.

The Delhi-based rating agency plans to rate between Rs 30,000 and Rs 40,000 crore worth of credit through this product. In the previous fiscal year, it had rated about Rs 1,50,000 crore worth of debt instruments for various maturities. "Icra will soon expand the scope of new business to oil companies like Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum as these oil companies have a wide retail network and want to know the liquidity situation of the their dealers," Gogna said.

The rating exercise remains the same as the rating for a debtinstrument, he said. However, it is being carried out for a client only. "The objective is to know whether the company has a good liquidity position and whether it can service the debt," Gogna said.

For instance, if Mitsubishi is interested in the liquidity position and working capital status of a particular company in which it seeks an exposure, it approaches Icra. The rating agency undertakes the exercise for the Japanese company. Based on Icra's assessment on the financial standing of the company, Mistubishi takes an exposure.

A similar exercise is now being launched for the oil companies which have a large dealer and retail network. "The oil companies are generally interested whether the dealers are financially sound and whether they are in a position to pay back on time. As a supplier, an oil company is definitely interested in the financial strength of the dealer as it extends credit to him," Gogna said.

Icra will provide a niche market for this product. It will undertake the assignment only forlarge companies in the local market and foreign companies interested in doing business in India. "We have a large information database already with us. This will help us provide an unbaised view on the corporates," Gogna said.