New Delhi, Aug. 19 -- The big three of the global credit rating business, Standard & Poor's (S&P), Moody's and Fitch, have a dominant market presence. While one could dispute their rationale behind a rating, the market accepts their assessments, which is what matters when any company is borrowing overseas.

Therefore, while the Indian government does not borrow in the global market, since its debt is denominated in rupees, all Indian companies encounter the impact of a global rating as their own rating is benchmarked with that of the sovereign.

While some corporations may have a higher rating of a notch or two, depending on their global business, the creditworthiness of most Indian companies is tied to the sovereign rating. Their cost of...