A credit rating is an assessment of the creditworthiness of a borrower in general terms or with respect to a particular debt or financial obligation. A credit rating can be assigned to any entity that seeks to borrow money – an individual, corporation, state or provincial authority, or sovereign government.
There are various criteria which decide the final rating assigned to the credit facilities availed by any entity:
- Operational growth of the company (i.e. Revenue, profits, cash accruals, etc.)
- Financial and operational leverage of the company.
- Overall industry outlook of the industry in which the client company is operating.
- Experience and qualification of the management of the company.
- Change in business plans and strategies.
We at M M Advisory provide support to our clients at every stage of ratings assignment process. Our services include but are not limited to –
Credit Ratings Assessment and optimization
- For unrated clients we assess the likely outcome of a credit rating process to support capital raising/refinancing transactions.
- We also optimize the credit rating for our client by communicating client credit quality to the rating agencies.
Ratings Execution
- We support our clients through all stages of ratings process: engaging with agencies, preparing for agency interviews, ensuring all appropriate supporting info and analysis is prepared and presented to agencies in the best possible light, and helping clients communicate ratings to internal as well as external stakeholder.
Scenario Testing
- We conduct scenario analysis: advice on the ratings impact of changes in business plans or proposed transactions such as mergers, acquisitons. JV’s, diversification, etc.