As a rating advisor, you should recommend issuers the right rating agency and prepare the company for the rating by the agency. To this end, you should understand how the agency works and what opportunities are available to the company for working with the rating agency.
INVESTORS MUST ACCEPT THE RATINGS
The most important thing for the rating advisor to do is to select a rating agency which enables the company to enter the capital market on reasonable terms. Institutional investors such as insurance companies or providence or pension funds are extremely critical in selecting investments. These investors are not primarily concerned with maximising the coupon but are more interested in the reliability of the rating and hence the security of the investment. The quality of the rating should also be an important criterion in a company’s choice of rating agency. Inappropriate ratings may adversely affect a company’s reputation in the capital market on a sustained basis and ultimately also harm its image.
We are pleased to explain our rating process to rating advisors and to furnish them with information material to constructively assist companies in preparing for an Euler Hermes rating.
Here you will find more information on the rating methods applied by Euler Hermes Rating.