How the Rating Process Works
The rating process is largely standardised across all business lines and is briefly summarised below for ratings initiated at the request of the rated entity or obligor.
1. Initial Engagement Discussions and a Rating Agreement
The client’s rating requirements are discussed and a contract signed to formalise the scope of the assignment, the fee and payment schedule, and the terms and conditions.
2. Provision of Information
Our analytical team requests relevant financial and non-financial information to understand the entity’s business model and risk profile. Any non-public information provided to us as part of the process is treated in confidence and is not disclosed without permission.
3. Management Meetings
Ratings analysts meet with the client to discuss credit relevant factors, including recent business and financial performance, future plans and expectations and, where relevant, the planned transaction structure. Our approach is cordial and constructive and never interrogative or overcritical.
4. Analysis and Report Preparation
A credit rating report is drafted and a rating recommendation made by the primary analyst.
5. Rating Committee Deliberation
The draft credit rating report is discussed by a committee of experienced rating analysts, who ultimately determine the ratings and rating outlook via a majority vote. The rating report is updated to reflect the committee’s opinion.
6. Client Notification and Review
The rated entity is provided with an opportunity to comment on the report and ratings, correct any factual errors, and ensure that any confidential information has been removed before the report is finalised.
7. Publication and Dissemination
The final report is published and the ratings disseminated to the public (unless the ratings are private).
8. Surveillance and Periodic Review
The ratings assigned are monitored on an ongoing basis and formally reviewed at least once every six months for sovereign and sub-sovereign ratings and once every 12 months for bank, NBFI, and corporate ratings. Ratings may, however, be reviewed and revised at any time if there is a material change in creditworthiness.
Want to Know More?
You can find information on our credit rating services here.
Frequently asked questions by banks, companies, and other entities interested in a credit rating can be found here.
For pricing information and any other business enquiries, please contact our Marketing Department here.