What do rating advisory services help improve for their clients?

Rating advisory services primarily focus on assisting clients, such as corporations or municipalities, in enhancing their credit ratings, particularly their bond ratings. A higher bond rating signifies lower credit risk, which can lead to more favorable borrowing terms, including lower interest rates. These services typically provide analyses and strategies that help improve an issuer’s financial standing, operational efficiency, and risk management practices, all of which can contribute to a better credit profile.

As issuers strive for higher ratings, they often benefit from tailored recommendations that align with rating agency criteria. This might include optimizing financial reporting, enhancing liquidity positions, or restructuring existing debt. Improving an issuer's bond rating not only reduces the cost of future debt but can also elevate its market reputation, attracting investors and providing competitive advantages over other entities with lower ratings.