What is credit rating advisory?
Credit rating advisory is preparation support for companies engaging with a credit rating agency. It involves reviewing the company's financial profile, organising the information typically examined during a rating exercise, and helping management anticipate and respond to credit-related questions.
What does it include?
- Credit profile assessment
- Financial analysis of historical performance
- Projection review and assumption testing
- Rating preparation and information organisation
- Management discussion preparation
- Documentation support
How does the credit rating process work?
A company typically engages a rating agency, submits financial and business information, participates in a management discussion, and responds to follow-up queries. The agency then applies its own methodology and assigns a rating through its internal committee process, followed by periodic surveillance.
Who needs credit rating advisory?
Companies approaching a first-time rating, those undergoing a periodic surveillance review, and businesses that want to understand how their financial profile is likely to be read by a credit analyst before entering the process.
What does it cost?
Pricing depends on the scope, transaction volume, complexity, reporting requirements and engagement model. Navrang Global Advisors provides tailored monthly engagement proposals.
What are the limitations?
A credit rating is determined independently by the relevant credit rating agency based on its assessment process and methodology. Advisory support can help a company prepare information and understand credit-related considerations. No rating level, outcome or timeline can be guaranteed.
Frequently asked questions
- What is credit rating advisory?
- Credit rating advisory is preparation support for companies engaging with a credit rating agency, covering financial analysis, projection review, documentation and management discussion preparedness.
- How does the credit rating process work?
- The company engages an agency, submits financial and business information, participates in a management discussion and answers follow-up queries. The agency then applies its own methodology and assigns a rating, with periodic surveillance thereafter.
- Can an advisor guarantee a credit rating?
- No. A credit rating is determined independently by the relevant credit rating agency based on its assessment process. Advisory support can help a company prepare information and understand credit-related considerations.