What is the value of one credit rating notch?

In this original study, SwissThink President Blaise Ganguin shows the impact that a one rating notch difference can have on a firm’s cost of funding. He estimates based on 20 year US Fed data that, for example, the median “value” of the one notch between a BBB- and BB+ is 45 basis points (bps), the third quartile point is 62 bps and the maximum difference was over 200 bps, or more than 2%! This is the reason why CFOs, Treasurers and anyone engaged in raising funds for a company should take the credit rating process very seriously. With our over 300 years of combined senior credit rating experience, covering all asset classes and geographies, SwissThink Senior Advisors are looking forward to connecting with you to discuss how best we can support you in your rating journey. Our objective is for your firm, or the transaction you are sponsoring to receive the best possible credit rating.