The Credit Rating Agency of Bangladesh (Crab), second such company in the country, will make ratings on debentures, right shares and premium issued by companies.

"This will be helpful for the shareholders, depositors and creditors to choose right companies or financial institutions for themselves," M Syeduzzaman, chairman of the Crab, said at the company's formal launching in Dhaka.

Syeduzzaman, also a former finance minister, said the company is expected to provide independent, credible, analytic and specialised grading, research and management consultancy services to the corporate and financial sectors.

"It would also provide reliable information and guidance to institutional and individual investors and creditors," the Crab chairman hoped.

He said Crab has a technical collaboration agreement with Investment Information and Credit Rating Agency (Icra), one of the leading credit rating institutions in India.

Under the deal, Icra will help Crab in developing credit rating methodologies, performing rating assignments, establishing database, designing rating advisory, information services and training of the Crab personnel, Syeduzzaman said.

The company will also introduce ratings for construction firms and private clinics for the people to judge right institutions for them.

Commerce Secretary Suhel Ahmed, Bangladesh Bank Governor Fakhruddin Ahmed, Crab Managing Director Anwaruddin Chowdhury and chief executives of banks and insurance companies were present at the function.

Speaking at the function, M Aminuzzaman, president of Bangladesh Association of Bankers and managing director of NCC Bank Ltd, welcomed the launching of Crab.

"Banks and other financial institutions will be encouraged to take part in such ratings if regulatory bodies like the SEC make it mandatory for their listing," Aminuzzaman said.

The first credit rating firm -- Credit Rating Information Services Limited (Crisl) -- has been in the market since last four years.