10 Things Companies Should Never Do During a Rating Exercise

Certain behaviours consistently undermine credibility with rating analysts and are worth actively avoiding.

The List

•      Do not submit inconsistent figures across different documents without reconciling them first

•      Do not withhold information about known risks, since this typically surfaces anyway and damages credibility once discovered

•      Do not send conflicting messages through different management representatives

•      Do not treat the management meeting as a one-way sales presentation rather than an interactive discussion

•      Do not attempt to negotiate or pressure the agency toward a specific rating outcome — this is outside the process and generally counterproductive

•      Do not delay responses to follow-up queries, since this stalls the timeline and can read as evasiveness

•      Do not present overly optimistic projections without a credible, well-supported basis for the assumptions

•      Do not overlook the surveillance obligations that continue after the rating is assigned

•      Do not assume a good current-year performance alone guarantees a favourable outcome, since agencies assess trends and sustainability, not a single year in isolation

•      Do not skip internal preparation on the assumption that strong financials will speak entirely for themselves

Talk to FinMen Advisors — for help preparing for a rating exercise, write to marketing@finmen.in or call +91 77387 14680.

Disclaimer: This article is intended for general informational and educational purposes only and does not constitute financial, credit, investment, or legal advice. Credit ratings are assigned solely by SEBI-registered Credit Rating Agencies (such as CRISIL, ICRA, CARE Ratings, India Ratings, Brickwork, Acuite, and Infomerics) based on their own methodologies, policies, and the information available to them at the time of assessment. FinMen Advisors provides preparatory and advisory support to companies undergoing a rating exercise and does not issue, influence, or guarantee any rating outcome. Readers should exercise independent judgement and consult qualified professionals before making business or financial decisions.