Debt and Credit Relations

A company with public debt, or counterparties who take the company’s credit risk, must focus on this investor class.

Debt investors have very different concerns from equity investors, and management must understand those to be effective. The debt markets are important as they can trigger reactions (cross-contamination) in the equity markets. For example, in times of crisis, credit derivative swaps can be a proverbial “canary in the coal mine” signaling a building risk before the equity markets are fully aware of it.

At Gravitas, we have built and managed debt and creditor investor relations functions. Our experience and insight can help management engage this critical market segment.

Credit Rating Agency Relations

Credit rating agencies are critical to companies that rely on public debt or have clients who take credit risk to the company.

Managing credit rating agency relations can be uniquely difficult. They operate with rigid credit assessment methodologies to which they apply a qualitative overlay. To support their analysis, credit rating agencies often obtain material non-public information from the company under non-disclosure agreements. This can significantly complicate matters, especially when the performance or strategic outlook changes, as the agencies will be privy to that information long before the public markets.

At Gravitas we have managed relationships with all the major credit rating agencies. We can advise companies on how most effectively to engage with them to best tell their credit story and protect its ratings.