Benefits of a credit rating in case of applications other than a bonds issue

Applications of a credit rating may be very wide and are not limited to bonds issues only. An assessment of the company's financial credibility in the form of a credit rating assigned by a professional credit rating agency may be used, amongst others, in the following areas:

Company's stakeholders     Benefits of a credit rating
  • an effective of ownership supervision
  • control over the company's business risk
  • information about rational use of funds
Management Board
  • information about the company's strenghths and weaknesses
  • help in managing of risks in the company
  • basis to assess the effects of implemented restructuring programs
  • instrument for obtaining a competitive edge
  • authentication of the company in relations with clients
  • easier acquisition of clients
  • an element of competitive advantage during pariticipation in tenders
  • bulding lasting relations with suppliers
  • easier obtainment of merchant credits and extending payment dates
  • supplementation of the internal bank rating
  • increased access to credits (with simultaneously reducing the interest rate)
  • easier obtainment (and decrease of costs) of financial guarantees granted by banks and insurance companies
  • general strengthening of the position in negotiations with borrowers
  • easier obtainment of external capital for the company
  • building the image of a transparent, credible, and financially reliable company
Public opinion
  • an instrument for bulding public trust
  • a communication and pulic relations tool
  • ensuring comparability of information about companies
Financial analysts
  • providing essential and reliable information about the company
  • increased transparency and reliability of the company
  • easier risk assessment and business valuation
Stock investors
  • easier access to financing on the capital market
  • facilitating stock market debut (IPO)
  • improvement in the perception of risk among shareholders, which positively affects the company's market value
  • an investor relations policy instrument