Rating Advisory

Navigating Rating Advisory Challenges

Rating agencies universally evaluate and assess a company’s ability to understand and effectively manage risk relative to capital. Agencies aim to be transparent in their rating evaluations and explicitly outline their rating methodology.

Most share a similar criteria structure (balance sheet, operating performance, business profile, enterprise risk management) but the similarities diminish as you take a closer look across the rating agency landscape to the scope, experience and coverage of each rating firm. Understanding the unique perspectives of each rating agency is paramount to managing credit ratings.

New and evolving criteria, untimely requests for information during and post events, poor or little analyst communication are just a few challenges in today’s complex and uncertain environment that make managing credit ratings increasingly difficult. Furthermore, managing your rating agency relationship(s) is increasingly costly in terms of both time and resources as the risk landscape transforms quickly and rating agencies react.