Newly established credit ratings business Australia Ratings plans to target financial planners, according to its managing director Chris Dalton.

The firm, led by the former Standard & Poor's (S&P) managing director, has also received an Australian financial services licence (AFSL) from ASIC.

Under the licence, the firm can issue credit ratings to Australia's retail and institutional markets.

"The initial focus of the business will be on institutions, debt securities and fixed-income products with a presence in Australia's retail financial markets," Dalton said.

"We do, however, have plans to expand this research out to financial planners. We will be speaking with planners about what sort of research they need."

The firm will apply ratings to debt securities and products offered to retail investors.

Dalton said the firm will also rate fixed-income managed funds.

He said the business began following a gap in the market for credit research.

"The decision of the three American rating agencies operating in Australia not to apply for an AFSL to provide credit ratings and research to the retail sector has left a gap in the market, which Australia Ratings seeks to fill," he said.

These agencies included Fitch, S&P and Moody's.

The board of Australia Ratings includes Bennelong Funds Management chief executive Jarrod Brown and former Treasury Corporation of Victoria chief Mike Dontschuk. Dontschuk is currently Finance & Treasury Association president.

The firm's analysts include Belinda Smith, Chris Cudsi and Phil Bayley.

Smith previously worked at Country Energy as group manager, Cudsi worked at Tyber Capital and Bayley worked at S&P as a director of capital markets.