Credit rating analysts rarely take the information given to them by the company being evaluated at face value. Since the company is coming for a credit rating, most likely, the company will be “putting its best foot forward” so as to get the the best credit rating possible. It is then up to the rating [...]
What information must you be ready to give to a credit rating agency so they can do their job and evaluate your company properly? There will be a lot of details that a rating agency will be asking of your company. Typically, when you sign the credit rating agreement (or even before you do that), [...]
How much does it cost to get a credit rating? In the Philippines, most prospective ratees still find the amount of rating fees quite steep. As my former boss would always say though, “There is a cost to doing something. There is also a cost to not doing something.”
One of the most-frequently asked questions when talking to a prospective credit rating client is: “How long will it take to get a credit rating?” The surprising part is that some clients come to a rating agency at the last minute or a few weeks before they need the actual credit rating.
There are global or international rating agencies and there are domestic and national rating agencies. Global rating agencies are rating agencies like Standard & Poor’s, Moody’s, and Fitch. They rate issues and issuers in different countries and likewise rate sovereigns. The rating of the sovereign in which a particular company operates impacts heavily on the [...]
What is the difference between a credit rating and a credit score? A credit rating is an opinion as to an entity’s capability and willingness to pay its obligations upon maturity. A credit rating is typically prospective. A rating agency usually has a particular rating methodology that it follows but it is rare that specific [...]
Public information ratings are ratings based on publicly-available information. This would refer to data contained in annual reports, published news articles, and anything else that is available in the public domain. Some rating agencies do public information ratings to increase their rating coverage and also to entice specific companies to go for a full-blown, interactive [...]
There are several ways by which we can classify credit ratings. The first classification we shall discuss are: issue and issuer credit ratings. An issue credit rating is also known as a debt credit rating. The credit rating is given in relation to a specific debt issue. The debt issue can be a commercial paper, [...]
Why should a company consider getting a credit rating? There are several reasons that we have seen: 1. To lower financing costs – most companies obtain a credit rating because they have plans of issuing debt paper. Commercial papers, bonds, asset backed securities — the interest rates charged on such debt issuances would vary depending [...]
Quite recently, we have received a lot of inquiries from prospective companies looking to get a credit rating and this is quite unusual for the start of the year. When we talk to these prospective ratees, we find out that most of them want to do a rating because interest rates are quite low at [...]