Big3 Credit Rating grad > IB after 1 year
Non Target grad looking to make the move..
Have just accepted my offer to join a large big 3 rating agency in there grad program. Kinda happy with it as I know IB recruitment in a recession as a non Target is slim, but know I have to make the move at some point before I end up a CRA for life.
My question is how easy is it to pivot to Lev Fin, DCM or private credit groups after a year? Ideally lev fin as it has better chances of recruitment to PE down the line.
Does anyone know the chances, if so what credit teams should I rotate on as a CRA, guessing Leverage/ structured finance are the best bets. The firm sponsors CFA, would that help with BB lev fin recruitment?
Bump
you will see good exits from rating agencies, however those typically arise at experienced Associate/VP/Director level laterals as that individual can contribute unique insight into IG/HY/certain sector/securitised products/credit docs which takes time to develop
hence why it is less common to see laterals to a true FO IB role as a junior from a rating agency, its more common to see junior laterals to credit risk, corporate banking with DCM franchises (eg japanese banks), portfolio management or buyside credit or they do an MBA
i went from a rating agency to PE but I am the only person I know of from my cohort who has done it tbh
Hey man Appreciate the insight; in a sort of similar boat can I pm? Thank you!
yes
Thanks, that’s good advice. I have some good pre Uni experience and internships in business ops etc that I’m hoping to leverage too, but good to know staying in CRA can be seen as valuable down the line. Will bear that in mind before trying to jump too fast
Can I ask how u made the move to PE? Must be possible I guess
multiple laterals, specialised early and worked very hard to learn equity in my free time
I lateraled to a coverage team for a BB. It is doable. I know a few other analysts who lateraled as well, although they end up in smaller boutique banks (I.e. SocGen, BNP)
Depends on how strong your rating agency is in that product/asset class. In securitized products Kroll rates all sorts of crazy shit, which will make you a good candidate for a bank that structures the same crazy shit. However, you will have a hard time competing against a banker looking to lateral with relevant experience. Is it easy? No. Is it possible? Yes.
For example, I wouldn't recommend sfg at Moody's simply because there isn't a transferable skillset (all of the models were pre-built) so you won't get the necessary cash-flow modeling skills and they don't rate risky things. Other rating agencies will be much better. Really the only exception for Moody's is CLOs. They have a structured program and you get to learn how waterfalls work really well, which is transferable to all asset classes and finance outside of CLOS.
I would recommend that you pick leveraged finance if you can (it will give you more options vs structured finance) and if you want the best of both worlds CLOs (easy to move into lev finance with a CLO background)
At a CRA , how would you rank FIG, SFG, Corporates? If you could elaborate in regards to exit opps and being pigeon holed. Wondering what team to go for, which has most flexibility and transferrable skills etc..
Following
lateraling to corporate banking that sits under the IB umbrella then make the move to IB is probably the most realistic route.
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