Why RAYON Capital Credit Rating Advisory:
Why Company should not give mandate directly to Credit Rating Agency
Many companies do not know which Credit Rating Agency will assign best rating to it. Company can’t shop freely with every rating agency because rating agency will ask for fees first and then will assign rating to company. In this scenario if company does not get desired rating, then money gets wasted.
If company appoints us as their Credit Rating Consultant, we collect all relevant information to analyze it first at our end and then share a summary on all aspects with rating analyst for their opinion without charging any fees from company. After this we advise company as to which Rating Agency, we must assign mandate. We prepare Project Report for company covering all the relevant information / data to get desired rating by emphasizing strength and opportunities available to company. We also do window dressing for weakness and threat, if any. We develop strategy for corrective action, in case of undesirable event.
Credit Rating Agency does not advise company on presentation of information and they do not take pain as they get fee in advance but in our case, fees depend upon our performance and on achievement of our commitment.
Rayon Capital Roles
Credit Rating Agency Selection
Based on RAYON Capital analysis of data and discussion with the Management on their expectations, we advise on the selection of Credit Rating Agency. It is important because:
- Knowledge & future prospects of a particular industry/sector is not same across agencies.
- Level of open mindedness differ from agency to agency .
l Right Credit Agency=Higher probability of getting optimal Rating.
Data Gathering/Analysis
Preparation & review of data/information and presentation for Credit Rating Agency by covering following areas:
- Industry & its attractiveness
- Company’s product & its competitive position in the market
- Operating Efficiency
- Accounting Quality
- Earnings & Financial Flexibility
- Management Evaluation
- Notes on associated and parent company
Appropriate Packaging of right & timely data along with commentary = Optimal Credit Rating
Management Meeting & Discussion with Analysts
Assist/Guide Management of Company by:
- Rehearsal of presentation
- Prepare notes & replies on expected questions to be asked by analyst of Credit Rating Agency
Concerned person knowledge & appropriate replies will help to:
- Address the doubt of analyst.
- Create a sense that concerned person is aware about market & company and his vision is aligning to the vision of the company
Publication of Assigned Rating
It is important to get relevant and right information published in rating publication so that concerned parties can view correct picture of the company in terms of:
- Credit worthiness
- Market Position
- Future Prospects
Company use published rating documents for marketing, negotiation with suppliers, raising funds with Banker sand Investors & for attracting talent pools, etc.