What Happens After a Rating Is Assigned?

Assignment of a rating is the start of an ongoing surveillance relationship, not the end of the process.

Dissemination

Once accepted by the company, the rating is published on the agency's website and, where required, disclosed through stock exchange filings or press releases, along with a rationale explaining the key factors behind the assigned rating and outlook.

Use of the Rating

The company can then use the assigned rating in discussions with lenders and investors — for bank facility pricing and terms, for bond or debenture issuance, or as part of broader capital-raising conversations, since the rating serves as an independent, third-party view of credit risk.

Entry Into Surveillance

The rating is placed under continuous surveillance from the date of assignment, with a formal annual review scheduled roughly twelve months later, and the possibility of an earlier interim review if a material development warrants one in the interim.

Ongoing Information Obligations

Companies are typically expected to continue sharing periodic financial and business updates with the agency between formal reviews, since a lapse in this ongoing engagement can itself become a rating concern, potentially leading to a rating being placed under watch or classified as non-cooperative.

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.