Credit Rating Improvement · Question

What steps does a rating agency follow when it rates a company?

Short answer

A rating agency generally signs a mandate with you, collects information, studies your business and financials, meets your management, and passes the analysis to a rating committee. The committee decides the grade, which is communicated to you, and once accepted it is published with a written rationale. After that, the rating is monitored.

In more detail

The exact timetable differs by agency and by the size of the business, but the sequence is broadly similar.

Engagement: you request a rating and agree the scope, such as a particular bank facility or the whole entity, and the terms of the assignment.
Information request: the agency sends a list of financial and business documents it needs. Delays here are the most common reason a timetable stretches.
Analysis: analysts study your industry, financial statements, cash flow projections, debt structure and operating history.
Management meeting: promoters and finance staff answer questions about plans, customers, suppliers, risks and governance. A site visit may form part of this.
Committee: an internal committee, not the analyst alone, reviews the proposal and decides the rating and outlook.

After the committee, the agency shares the proposed rating with you. Many agencies allow you to accept it or to request a review if you have additional information that was not considered. Once accepted, the agency publishes the rating and its rationale, usually through a public release.

Review is not negotiation

A reconsideration request normally needs fresh, substantiated information. Asking again for the same result without new facts seldom changes the outcome.

Ratings are not one-off. The agency continues to monitor you, collecting updated results and reviewing the rating at intervals. A major event, such as a large borrowing or a change in ownership, can prompt an earlier look. Responding promptly to these requests helps the agency keep the rating current.

Key points

The usual path is mandate, information, analysis, management meeting, committee, communication and publication.
A committee, not one analyst, decides the final rating and outlook.
Slow information delivery is the most common cause of delays.
Reconsideration generally requires new, substantiated information.
Monitoring continues after publication, with periodic reviews and event-driven checks.

Who this applies to

First-time borrowers commissioning an external rating.
Finance teams planning timelines for a loan that requires a rating.
Promoters preparing for their management meeting with analysts.

Last reviewed 3 October 2026

This answer is general information, not advice on your particular case. Terms, eligibility, and requirements change, so check the current position with the relevant institution or authority. Lalsar Holdings' financial advisory and financing work is advisory and facilitation only. Lalsar Holdings is not a lender. Sanction and disbursement of any credit facility is at the sole discretion of the partner bank, NBFC, or financial institution involved, subject to their own eligibility criteria and credit policy.