New Delhi, Feb. 10: Icra Ltd, the Delhi-based rating firm, will form joint ventures as part of its offshore expansion plans in neighbouring countries as well as in the Gulf.

The move, which is designed to expand the operations to overseas countries, assumes significance as it comes on the heel of global rating firm Moody's Investors Services increasing its stake in the company to 31.05 per cent from the current 23.44.

“Moody’s, which is the majority shareholder in Icra, have started the process of synergising its global operations with the Indian subsidiary,” said an analyst with a global consultancy firm.

“Icra would be there in the developing and underdeveloped economies while Moody’s would be in the developed countries. Moody’s expansion strategy would be to bank on its brandname along with Icra’s research capabilities,” he said.

Icra has tied up with Credit Rating and Collection (CRC) firm of Kuwait to provide analytical and research work.

It has also signed an MoU with the Sultanate of Oman.

The firm is exploring the possibility of establishing its presence in Bangladesh and Nepal through equity participation in local firms.

“Icra would provide technical services in the area of rating methodologies, research and analytical work, training of analysts and creating awareness in the local market,” said P. K. Choudhury, managing director of Icra.

Earlier in January, the Foreign Investment Promotion Board cleared Moody’s purchase of 8.18 lakh Icra shares worth Rs 9.41 crore at Rs 115 a share. The deal was sealed by Moody’s Investment Company India on behalf of Moody’s Investor Service.

Icra was floated by term-lender IFCI Ltd along with several banks and financial institutions which included the country’s largest commercial bank, State Bank of India, and state-run Life Insurance Corporation of India.

In 2002, Moody’s had also raised its stake by around one-and-a-half per cent when it bought the entire stake of Vysya Bank in Icra.

The firm’s association with Icra began in March 1996 when the Indian rating firm signed an agreement with Financial Proformas Inc, a Moody’s company, to provide specific financial services. But it was allowed to pick up a minority stake in Icra only in 1998. In September 2001, it became the single largest shareholder of Icra.