Credit rating advisory
A rating process requires the company’s business position, financial risks and plans to be presented within the relevant agency’s methodology. We support the analysis, documentation and dialogue so that the agency has information that properly reflects the company’s circumstances.
Rating situations
Initial ratings, ongoing reviews and transactions.
Initial credit rating
Review the purpose of the rating, expected information requirements and relevant methodological factors. Plan the preparation, assemble the analytical basis and support management’s presentation to the agency.
Ongoing rating reviews
Update the analysis for business and financial developments since the previous rating. Prepare annual meetings and interim updates, and support consistent responses to agency questions.
Transactions and financing decisions
Assess the potential rating implications of an acquisition, major investment, new debt, refinancing or shareholder distribution. Analyse financial headroom and vulnerabilities under different scenarios.
Advisory work
Methodology-led analysis and prepared discussions.
- 1
Map the rating drivers
Identify the business, financial and qualitative factors relevant to the sector and company. Compare the company’s characteristics with the methodology and with rated peers where meaningful comparisons can be made.
- 2
Financial information and forecasts
Organise historical information and the business plan, and analyse agency-specific adjustments. Assess leverage, cash generation, debt service, liquidity and refinancing risks.
- 3
Presentation and management preparation
Prepare materials explaining the company’s strategy, business model and financial position. Set out strengths, risks and mitigating actions, and prepare management for the likely questions.
- 4
Dialogue with the agency
Participate in discussions, coordinate supplementary information and support the company’s position with evidence. Review factual and methodological questions and other factors that influence the assessment.
Financial headroom
How could a decision affect the rating?
- How much investment or additional debt could be accommodated while maintaining the financial metrics relevant to the rating?
- What could changes in cash generation, delayed project start-up or a different financing structure mean for the credit profile?
- Which business and financial conditions underpin the agency’s stated upgrade and downgrade triggers?
- What information and actions could address the risks identified by the agency?
Deliverables
Typical outputs of an assignment
- 01Rating readiness assessment and action plan
- 02Methodology and peer analysis
- 03Financial metrics and scenarios
- 04Rating presentation and supporting materials
- 05Management preparation and Q&A materials
- 06Agency dialogue and review support
The agency determines the rating independently. Our work supports analysis, preparation and representation; it does not guarantee a particular rating.
Let’s discuss the assignment.
An initial discussion helps establish the business context, your objectives and the advisory support required.