HOW TO MANAGE YOUR AGENCIES
The rating process, and the agency relationship that goes with it, are critical inputs into any rating outcome. Some issuers manage this process better than others and approach their agency relationships with the same thought and effort as they might put into key customer, employee, or shareholder relationships. We outline below observations of best practices, based on our own experience.
Best practice issuers understand what agencies need from them in today’s difficult credit climate, and they approach their relationship as positively and proactively as they would with any other key insider:
The rating process balances qualitative and quantitative approaches, and because quantitative analysis requires significant discretion and judgment (e.g., ratings must capture underlying creditworthiness throughout an ...