Rating Agency Coverage
How does a company get picked up for coverage by a ratings agency? Are there any incentives to pick up as many companies as possible?
Thanks.
How does a company get picked up for coverage by a ratings agency? Are there any incentives to pick up as many companies as possible?
Thanks.
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In the muni world you request a rating from the rating agency you wanted to be covered by and you pay a fee for the rating. You can also solicit preliminary ratings from say Moody's and S&P to see if one rates you higher than the other and choose which you like best. The incentive to pick up as many issuers as possible is you get paid by them.
Makes sense. I'm assuming it's the senior analysts/MD's job to do the brunt of the marketing?
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