Ratings Advisory team at IB - How are hours?

Hi,

Has anybody got experience in a ratings advisory team at an IB ? I was wondering what the working hours are like and the typical day for an analyst? Is it client-facing at a relatively junior level?

Also, what kind of career progression can you expect after ratings advisory? Would credit research on sell-side or buy-side be an option?

Thanks for your answers !

 

Work hours would have to be better than IBD, since the ratings group really only performs one function and won't be asked to do other analyses, reformat presentations, etc. The position is not very client facing at the senior level, much less the junior level.

Credit analysis experience can be applied in a lot of different areas: ratings agencies, buy-side investing, research, corporate banking, commercial banking. That said I'm not sure how good the entry-level experience would be at a ratings advisory group vs. actual lending/rating decisions.

 

Thank you, guys

Can you elaborate on why the role is not very client facing, even at a senior level? I would imagine that you have to deal with the client directly to let him know what impact a bond/equity offering or even acquisition might have on its credit rating and then give advice on the best capital structure? Do you mean "not very client facing" because apart from these specific events, you won't be in touch with the client?

 

The reason it's not very client facing is b/c the IB team is usually in between the ratings group and the actual client. They share some company info with the ratings guys and then ask for feedback that they can relay to the client. The feedback is straightforward so there's usually no need for the ratings people to be present at meetings.

the ratings group doesn't really do work on optimal capital structure - their job is just to predict how S&P/Moodys/Fitch will react when new information about the company comes out.

 

Ratings advisory will not give you the same exit ops as investment banking. In my experience working with them, ratings advisory is a cushy job at the VP / ED / MD level. They're typically ex S&P / Moody's guys who can examine the rating (cost of debt) impact of additional leverage, usually in association with some sort of acquisition. Basically, they try to optimize the capital structure for the transaction by looking at a few metrics (interest coverage, leverage ratios, cash flow predictability, etc) so that the company can retain its current credit rating while taking on additional leverage.

Doesn't really seem worthwhile at the analyst level.

 

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