FinByz Consulting understands the implications of credit rating on your business and finances. Given the implementation of Basel norms the external credit rating has become inevitable part of banking system, and same can affect company’s borrowing cost significantly. Apart from financials there are many other parameters looked upon by credit rating agencies like Country risk, Industry profile, competitive scenario, commodity price fluctuations, vintage and expertise in business, etc which are more subjective rather than objective. The rating process is ultimately an assessment of fundamental and the probabilities of changes in the fundamentals as per change in external scenarios. FinByz Consulting’s goal oriented systematic approach helps corporates to optimise their rating by showcasing the strengths of the company in most effective way helping them optimise their credit ratings.
Goal oriented Approach by setting up realistic Expectations based on Facts and Figures!
Credit Rating Process
Understanding Rating Requirement
The project is started by understanding the credit rating requirement and expected outcomes. The financials and project details are shared by the company for doing primary analysis of the data.
Quantitative Analysis
We use our in-house models to analyse historical financial statements and produce forecast financial statements/credit ratios adjusted for agency methodologies, stresses and/or business plan scenarios, as appropriate. Findings are shared with Management highlighting any critical issues or areas of ambiguity suggesting scope of improvements.
Management Discussion
Bases on our assessment we share the valuable insights with clients suggesting areas of improvement. The management is also prepared for rating agency interviews by providing draft questions with key messages to highlight credit strengths and address weaknesses, supplemented by mock interviews if required.
Preparation of agency submissions
Using our insights of credit rating models we represent this data in most effective manner and complete first draft of rating agency presentation. We also prepare the supplementary material to provide holistic picture to rating agency enabling them taking fair view on credit worthiness of your company.
Coordination with Rating Agency
We provide complete hand-holding while presenting and discussing your case against the opted rating agency. In-fact we work as partner to our clients and many times act as one point contact for providing all required information to rating agency.
Credit Ratings Finalization
We communication of rating outcomes with verbal description of rationale. Advise on whether to appeal any aspect of the decision or accept the outcome and convert to a public rating as appropriate. We also review ratings report for errors, misstatements, or the omission of any material information.
Monitoring and Road Ahead
Most of the time rating is not a onetime process and it’s reviewed and revisited periodically. We help our clients in building long term strategies to maintain and improve their creditworthiness.