
Role of rating agencies in the creditworthiness of insurance firms 259
There is a difference in procedure between new ratings and the revision of old ones.
First time ratings require fairly extensive work starting with preliminary discussion,
following up with scheduled meetings and submitting advance background materials.
This preparatory activity may take about a month and it is followed by:
䊏 Analytical meetings with the rated company
䊏 The agency’s own credit analysis, and
䊏 Rating committee meetings.
In all, some two or more months of work are necessary before the issuer and credit
markets are informed of rating and its justifications. Rating reviews ...