Understanding and Managing the Credit Rating Agencies: A Guide for Fixed Income Issuers

This brand new book is a unique first-time explanation of the business and inner workings of the credit ratings industry. The book opens up previously undisclosed areas of information that will make issuers smarter participants in the ratings game. It will help them achieve their "optimal" rating by becoming familiar with the layout of the pitch, by learning how the agencies think and operate, how their business principles guide their processes, and the role of information asymmetry and secrecy. Without understanding the rating agencies' goals, assumptions and processes, an issuer's rating will not be optimal, and cost-effective funding may not be achieved. The three major international rating agencies, Moody's Investors Service, Standard & Poor's Ratings Services and Fitch Ratings, dominate the credit ratings business around the world. Given their many decades of experience, the agencies believe their set of rating procedures and methodologies are the best way to assess credit risk. They hold a number of beliefs about how companies, banks and governments should operate so that the interests of investors are protected.

"My compliments to the author for a thorough overview. It is very easy to read and for many this will be an education, including a lot of issuers." --Hans van den Houten, former Vice President and Director International of Moody's

"Roger Nye has written an extremely useful book that will assist financial officers seeking to tap new markets. It offers valuable insights into the workings of the rating agencies derived from his experience over the past 25 years." --J. Michael McMullen, former officer of Moody's Investors Service

"This is an important book for the CFO or Minister of Finance who wishes to effectively manage their relationship with the many credit rating agencies around the world. It unveils some of the mystery and internal practices that affect rating outcomes and consequently the price of credit." --Kenneth Weinstein, Senior Director, Kroll Bond Ratings