Credit Rating Advisory

SwissThink Credit Rating Advisory helps your company obtain the best possible credit rating. Our team combines 300 years of experience at premium rating agencies and in global financial markets.

WHY RETAIN SWISSTHINK AS YOUR RATING ADVISOR?

We will leverage our unmatched understanding of rating methodologies and of the credit rating process to ensure your firm obtains the best possible credit rating.

  • Our Senior Rating Advisors combine 300 years at Premier Rating Agencies

  • We will ensure better than anyone that your credit story is presented in the best possible light and addresses the key points of the often complex credit rating agencies methodologies.

  • We continue to have strong personal relationships with Senior Analysts and Executives at S&P, Moody’s and Fitch globally, and Ethifinance and Scope in Europe

  • We have chaired hundreds of rating committees

  • We have contributed directly to many of the methodologies currently in use, including ESG

WHAT IS THE CREDIT RATING PROCESS?

WHAT ARE CREDIT RATING METHODOLOGIES?

WHAT CAN YOU EXPECT FROM SWISSTHINK RATING ADVISORY?

Receive expected rating outcomes early in the process

Based on available information, we will provide a range of expected rating outcomes with our proprietary tools backtested on your sector peers.

Handshake

Support your selection of Rating Agencies

If you are seeking a credit rating for the first time, you can run a “Beauty contest” of Rating Agencies. We can assist you with the selection process and help you understand the rating methodologies.

Making changes to a web page

Assess the rating impact of your funding and capital structure decision

We will help you optimize your capital structure and assess the rating impact of key strategic decisions (M&A, capital investment, extraordinary dividends, refinancings).

Meeting with three people sitting around a table

Assist in the preparation of the management meeting

We will make sure your presentation addresses the analytical points raised by the methodologies, and your Executives are prepared to tackle dreaded questions from the Agencies’ analytical teams.

Maintain close contact with the Agencies’ analytical teams

Before the management meeting, we will validate the applicable methodologies with the Agencies, and immediately afterwards we will ensure they have the required information to make the best rating decision.

Heart beat

Tracking and communicating rating methodology changes

We will share with you the possible rating impact of methodology changes. We can also present the rating process and outcome to your Board or Executive Committee.

WHY DOES IT MATTER?

Simply said, the higher the rating, the less onerous the funding cost and conditions. As the chart below shows, there is a direct relationship between rating levels and funding costs. Also, higher rated firms will require fewer restrictive covenants.

Corporate Credit Spreads (1997-2022)

Corporate Credit Spreads (1997 -2022)

Source: US Federal Reserve of St. Louis, BofAML Option-adjusted spreads