The rating process is divided in different phases starting with the choice of agency by the issuer. After understanding the agency's philosophy including methodology by the issuer, the workload will be evaluated by the analysts and all necessary documents need to be provided.
Within the agency the dedicated rating team will be announced right after mandating, before the quantitative phase will start.
Management interviews will be carried out right after the quantitative phase has been finished in order to understand the individual business, the market and the underlying risks. The management interviews are an important base for the qualitative analysis. With its finalization, the rating committee will be able to announce a final decision, which then will be communicated to the issuer and press.
For a fully fletched rating procedure, Scope Ratings requires a list of documents which must be provided for the rating process. To entirely understand the Corporate or Corporate Bond, Scope Ratings needs to be provided with a Prospectus, Private Placement Memorandum, Offering Circular, Term Sheet and relevant legal documents.
In addition, for a comprehensive quantitative analysis, the analysts need detailed cash flow projections, issuer model of fund amortization or loss allocation figures etc.
A detailed list of required documents will be sent to the issuer in advance of the rating kick off.
Scope Corporate Ratings uses a forward looking methodology with sector specific peer group comparison including all important Data like cash flow, liquidity and profitability ratios.
Plausibility checks of business plans for the coming years are also an important matter as well as the quality of the management, which will be analyzed by looking at business strategy, management track-record, efficiency of the company, quality of risk management and many other key facts.