Strategic and operational rating advice plays a key role in increasing financial flexibility needed for transformative steps such as M&A, major investments, cashflow deterioration or share repurchases. A rating from a recognized rating provider facilitates funding access and reduces financing costs especially in times of heightened market volatility and investor uncertainty. While ratings are very common among US companies due to their long-established reliance on the capital market, the same does not hold true for their European peers, in-line with their lower rate of capital market funding. Driven by major fundamental changes such as regulatory requirements and a decreasing availability of bank lending the need to obtain and consequently manage their rating is likely to grow in the near future both among lower credit quality and higher quality borrowers.
We advise publicly and privately rated and rating candidate companies, public entities and financial sponsors on crucial credit rating issues by leveraging our credit and rating expertise to provide guidance on all aspects of the internal and external credit rating process. We employ comprehensive credit rating methodologies as applied by the key rating agencies reflecting the current credit profile and key credit drivers related to the business risk, financial risk and increasingly ESG risks of the evaluated entity. Only a deep understanding of the analyzed company’s business model and a prudent application of scenario, sensitivity and sector comparison enable reliable assessments and opinions in terms of the company’s debt and credit rating. This also includes advising on and management of the initial rating and continued process and interaction with the rating agencies. We identify critical credit rating levers and advise our clients on the credit rating implications of their envisaged corporate actions and strategic initiatives.