Preparing for a First-Time Rating, A CFO's Checklist
A first credit rating carries weight. It is the reference point lenders return to, and the foundation every future review builds on. Going in unprepared is the most avoidable mistake a first-time issuer can make.
Here is a checklist to get the basics right before you engage.
1. Get your documentation in order
- Audited financials for the last three to five years.
- Latest provisional or management financials.
- A clear debt profile: facilities, tenors, securities, and repayment schedules.
- Projections with the assumptions written down, not just the outputs.
2. Understand your own numbers
Before an analyst questions a ratio, you should know why it looks the way it does. Walk through your leverage, coverage, and working capital cycle and be ready to explain the drivers, especially anything that looks unusual at year-end.
3. Connect the context
Numbers without context invite conservative assumptions. Be ready to explain:
- How your business earns and spends across its cycle.
- Group structure and any support that genuinely backs the entity.
- Order book, capex plans, and contracted revenue that improve forward visibility.
4. Prepare the management discussion
The rating discussion is not a formality. It is where perception is shaped. Align your team on the key messages, anticipate the difficult questions, and make sure everyone tells the same, accurate story.
5. Know what a good outcome looks like
Set a realistic internal view of where your profile sits and why. That keeps the conversation grounded and helps you evaluate the rationale you receive at the end.
A first rating is not something to improvise. Prepared well, it sets a credible baseline. Prepared poorly, it can anchor you below your potential for years.
If you are approaching your first rating, a structured run-through before you engage is time well spent.