3. Preparation and early engagement are critical

Obtaining a subscription line credit rating offers many benefits but demands careful consideration and meticulous preparation. Key considerations for borrowers include: 

• Engage the rating agency early: This enables a fund to get an early steer as to whether a rating is possible before doing any extensive work.

• Align internal teams on the public rating report: The end report includes high-level information and investor categories and does not disclose confidential information. Sharing across internal teams can help establish an understanding of the public rating process. 

• Review the report before it is published: Rating agencies allow the borrower to review the public rating to ensure it is factually accurate before it’s available in the public domain. 

• New fund raises: Careful consideration should be given to the rating process around new fund raises and working closely with the rating agency can be beneficial. It may be that a rating is not obtainable at first close but could be achieved at later closes. 

• Access to legal documents: The rating agency typically reviews all legal documents governing the fund and the facility agreement. Seeking a credit rating can be daunting but ample support is available from both banks and rating agencies. Early engagement is key to allow borrowers to understand the process and provide an indication to help attract lenders.