Rating consulting for an oil and gas company from the CIS region
Rating advisory - Dec 17, 2022
The rapid development of market relations in Central Asian countries is attracting increasing attention from investors. This has resulted in growing the demand of local issuers for obtaining credit and ESG ratings, which are one of the most significant market indicators. By improving its credit rating, a company can unlock fundamentally new opportunities for development, strengthening its transparency and investment attractiveness.
At the same time, corporate issuers also strive to improve their ratings to follow their government’s economic policy, which usually aims to transfer state-owned enterprises towards a market economy. Thus, the mandatory receipt of a credit rating from international rating agencies such as Moody’s, S&P Global, and Fitch Ratings is enshrined in regulatory documents for a number of the region’s largest issuers.
As an example, our team advised a large state-owned company representing the oil and gas industry, based in a country in Central Asia.
During the client consultation process for the initial credit rating assignment, our team completed several tasks:
- Provided recommendations on positioning government support;
- Provided recommendations on optimizing the financial model and positioning the financial profile and credit portfolio structure;
- Provided recommendations on positioning the investment program and effective liquidity management;
- Provided recommendations on managing market positions and business profiles;
- Provided recommendations for improving corporate governance;
- Prepared a package of presentation and analytical materials for submission to the rating agency;
- Organized communication with the rating agency.
Consistent work on maximizing the client’s rating potential determined the successful completion of the project. As a result of our work with the client, we were able to achieve the initial credit rating assignment at the targeted sovereign level.
Significant experience working with companies in Central Asia, broad industry expertise, and a deep understanding of the methodological nuances of working with international agencies sets us apart from other consultancies.