External ratings are an important financial communication tool to raise the standards of transparency towards the markets for the most forward-looking companies.
In particular, ratings can be useful for:
- Accessing capital markets. The rating contributes to the increase of the company’s visibility vis-à-vis investors, both domestic and international, and allowing them to take more insightful investment decisions as far as the underlying credit risk is concerned.
- Diversification of funding sources, paving the way for banking disintermediation. A rating gives the issuer greater flexibility, currently and prospectively, to finance its growth plans.
- International accreditation not just in relation to financial counterparties but also commercial ones (suppliers, clients, partners, export credit agencies, tender offers). Ratings can reinforce the perception of credit reliability at an international level, as they are a broadly recognized financial communication tool.
- Internal financial discipline, aimed at improving the rating over time, in line with the issuer’s investment and growth plans. The rating report highlights the strengths and weaknesses underlying the credit opinion of the evaluated entity.