{"id":250497,"date":"2026-04-23T18:00:00","date_gmt":"2026-04-23T21:00:00","guid":{"rendered":"https:\/\/valoriza.com\/?p=250497"},"modified":"2026-05-12T18:38:44","modified_gmt":"2026-05-12T21:38:44","slug":"que-es-un-rating-crediticio","status":"publish","type":"post","link":"https:\/\/valoriza.com\/en\/articulos\/blog\/que-es-un-rating-crediticio\/","title":{"rendered":"What Is a Credit Rating and How Does It Influence Business Decisions?\u00a0"},"content":{"rendered":"

The Access to finance<\/strong> is one of the factors that most conditions company's growth capacity<\/strong>. However, not all companies can access capital under the same conditions: the rate a company pays for its debt, the term it obtains, or even the possibility of raising funds in capital markets depends, to a large extent, on how creditors assess its risk.\u00a0<\/p>\n\n\n\n

In that context, the credit rating <\/strong>it plays a central role: it is the signal the market uses to estimate the probability that a company will meet its financial obligations.\u00a0<\/p>\n\n\n\n

Understand What is a rating<\/strong>, how it is built and what practical consequences it has for the business management<\/strong> it is essential for any executive or entrepreneur who makes financing decisions, debt structuring or long-term strategic planning<\/strong>.\u00a0<\/p>\n\n\n\n

\"rating<\/figure>\n\n\n\n

<\/p>\n\n\n\n

What is a credit rating <\/h2>\n\n\n\n

A credit rating<\/strong>, also called credit rating or risk classification<\/strong>, is a opinion issued by a specialized agency<\/strong> regarding the ability and willingness of an entity to meet its financial commitments.\u00a0<\/p>\n\n\n\n

In simple terms, answer the question: \u00bfHow likely is it that this company will pay what it owes<\/strong>, within the agreed deadlines?\u00a0<\/p>\n\n\n\n

The most recognized rating agencies globally<\/a><\/strong> sound Moody's, Standard & Poor's (S&P) and Fitch Ratings<\/strong>. In Chile, the Financial Market Commission (CMF) authorizes rating agencies such as Feller Rate and Fitch Chile to operate in the local market.\u00a0<\/p>\n\n\n\n

All of them use symbolic scales to express their assessment: in the case of S&P and Fitch, the range goes from AAA, the highest rating, indicating maximum capacity to pay, to D, which denotes default. Moody's uses an equivalent nomenclature ranging from Aaa to C. <\/p>\n\n\n\n

The key threshold in these scales is lthe line that separates the so-called \u201cinvestment grade\u201d from the \u201cspeculative grade\u201d or high yield<\/strong>. Ratings from BBB- and above (on the S&P scale) are considered\u00a0investment grade<\/strong>; those that fall below that level are classified as speculative. This distinction is not merely technical: it has a direct impact on who can invest in a company's debt instruments and at what cost.\u00a0<\/p>\n\n\n\n

How a rating is built <\/h2>\n\n\n\n

The assignment of a rating<\/strong> it is not an automatic process nor is it reduced to a one-time financial analysis. Rating agencies perform a comprehensive evaluation that combines quantitative and qualitative variables, with a long-term horizon.\u00a0<\/p>\n\n\n\n

On the quantitative level, analysts examine indicators such as debt coverage (the relationship between EBITDA and financial expenses<\/a>)<\/strong>, the leverage level<\/strong>the free cash flow generation<\/strong>, current liquidity, and the maturity structure of liabilities.\u00a0<\/p>\n\n\n\n

It also analyze the historical evolution of these metrics and their projected trajectory<\/strong>. A sustained deterioration in interest coverage, for example, can anticipate a rating downgrade even before the company faces cash flow problems.\u00a0<\/p>\n\n\n\n

At the qualitative level, agencies evaluate the company's competitive position in its industry, the diversification of its revenue sources, the quality of the management team, the strength of corporate governance, and the predictability of the regulatory environment in which it operates. <\/p>\n\n\n\n

A company with strong financial indicators<\/strong> but exposed to a highly cyclical industry or a volatile regulatory framework may receive a more conservative rating than its isolated figures would suggest.\u00a0<\/p>\n\n\n\n

Finally, the macroeconomic context and the sovereign risk of the country where the company operates also affect the final rating. In practice, the A company's rating can rarely exceed the sovereign rating of its country.<\/strong> where it is domiciled, given that systemic risk limits the ceiling of achievable credit quality.\u00a0<\/p>\n\n\n\n

The direct impact on the cost of debt <\/h2>\n\n\n\n

The most immediate and measurable consequence of a credit rating<\/strong> It is his effect on the cost at which a company can access financing<\/strong>. Creditors, whether banks, investment funds, or bondholders, use the rating as a proxy for the risk they assume when lending capital, and that risk translates directly into the interest rate they demand.\u00a0<\/p>\n\n\n\n

The difference between the rate paid between a AAA-rated company and a BB-rated one can be several hundred basis points<\/strong>. In high-rate contexts, like the one that has prevailed in much of the world since 2022, that difference is amplified and can represent millions of dollars in additional financing costs over the life of a bond or a syndicated loan.\u00a0<\/p>\n\n\n\n

Beyond the marginal cost of each operation, the rating also conditions the universe of available creditors<\/strong>. Many institutional investors, pension funds, insurance companies, and sovereign wealth funds have mandates that prevent them from investing in instruments that do not reach investment grade.\u00a0<\/p>\n\n\n\n

A company that loses its BBB- rating and falls to speculative grade can experience a massive outflow of investors, which contracts the demand for its instruments and puts further upward pressure on its spreads. This phenomenon, colloquially known as a \u201cfallen angel,\u201d can trigger a spiral of higher financing costs at a time that is already vulnerable for the company. <\/p>\n\n\n\n

\"rating<\/figure>\n\n\n\n

<\/p>\n\n\n\n

How ratings influence strategic decisions <\/h2>\n\n\n\n

The credit rating<\/strong> not only does it affect the conditions under which a company finances itself: broadly permeates its ability to execute growth strategies, expansion and M&A<\/a>.\u00a0<\/strong><\/p>\n\n\n\n

Investment and expansion decisions:<\/strong>\u00a0An investment-grade company has access to capital markets<\/strong> under conditions that allow it to finance long-term projects with efficient debt structures.\u00a0<\/p>\n\n\n\n

You can issue corporate bonds with terms of 7, 10, or even 15 years at competitive rates, facilitating infrastructure projects, geographic expansion, or acquisitions that require extended recovery horizons. <\/p>\n\n\n\n

A speculative-grade company<\/strong>, on the other hand, is usually limited to short-term bank financing<\/strong> or debt with more restrictive conditions, which conditions the scale and profile of the projects it can undertake.\u00a0<\/p>\n\n\n\n

M&A processes:<\/strong>\u00a0At mergers and acquisitions transactions<\/strong>, the buyer rating is a determining factor<\/strong> in the structuring of the deal financing.\u00a0<\/p>\n\n\n\n

If the acquiring company has a strong credit rating, it can raise bridge debt or issue bonds to finance the transaction at reasonable costs, maintaining value creation for shareholders. <\/p>\n\n\n\n

If the credit rating is tight, the acquisition cost becomes more expensive and banks may demand more restrictive covenants that limit operational flexibility post-transaction. In some cases, the fear of a rating downgrade due to the increased leverage implied by an acquisition can lead boards of directors to discard transactions that would be strategically attractive. <\/p>\n\n\n\n

Vendor and counterparty relations:<\/strong> Credit ratings are not only of interest to banks and investors: in certain sectors, major suppliers or business partners also use them as a reference to define the payment terms they are willing to grant, the amounts of commercial credit lines, or the requirement of guarantees in long-term contracts. <\/p>\n\n\n\n

A rating downgrade can, therefore, also affect the supply chain and the operating conditions of the business. <\/p>\n\n\n\n

Capital structure management:<\/strong> Companies that actively monitor their credit rating tend to manage their capital structure more disciplinedly. Continuous monitoring of the indicators that agencies observe\u2014interest coverage, leverage, free cash flow generation\u2014induces a more rigorous financial culture and greater attention to the balance between debt and equity. <\/p>\n\n\n\n

In this sense, the rating acts not only as a signal to the market, but also as an internal financial discipline mechanism. <\/p>\n\n\n\n

Implicit ratings: the reality of the closed company <\/h2>\n\n\n\n

An important consideration for the Latin American business context, and the Chilean context in particular, is that Most companies do not have a formal rating.<\/strong>assigned by a rating agency.\u00a0<\/p>\n\n\n\n

Formal credit ratings are reserved, in practice, for companies that issue instruments in capital markets, stocks, or bonds, subject to the regulation of the CMF or equivalent bodies in other countries. <\/p>\n\n\n\n

However, this does not mean that the concept loses relevance for closed companies<\/strong>. The commercial banks internally carry out equivalent exercises<\/strong>they assign implicit ratings to their corporate clients as part of the credit process, and that evaluation determines the conditions under which they are willing to lend.\u00a0<\/p>\n\n\n\n

The bank scoring models<\/strong> they consider variables very similar to those used by formal agencies: profitability, debt coverage, liquidity, company age, and management quality.\u00a0<\/p>\n\n\n\n

For the companies seeking to access non-bank financing<\/strong>, private debt, debt funds, institutional investors, the exercise of building a solid credit profile<\/strong> and documented is increasingly relevant. Presenting audited financial statements, financial projections with well-founded assumptions, and a transparent analysis of business risks is, in practice, the equivalent of proactively managing the company's implicit rating.\u00a0<\/p>\n\n\n\n

\"rating<\/figure>\n\n\n\n

<\/p>\n\n\n\n

Factors that improve or deteriorate a rating <\/h2>\n\n\n\n

Understand what variables move the needle on a credit rating<\/strong> allows companies to make proactive decisions to manage their risk profile.\u00a0<\/p>\n\n\n\n

Among the positive contributing factors<\/strong> they are found consistent and growing generation of operating cash flow<\/a>,<\/strong> the progressive deleveraging<\/strong>the diversification of income sources<\/strong>, the soundness of corporate governance, transparency in financial reporting, and the existence of committed credit lines that provide emergency liquidity.\u00a0<\/p>\n\n\n\n

The company's competitive position in its industry and the stability of the regulatory environment in which it operates also have a favorable impact. <\/p>\n\n\n\n

Among the factors that can cause a downgrade include the deterioration of the operating margin<\/strong>, the increase in leverage<\/strong> above the typical industry thresholds, the debt maturities<\/strong> focused on the short term without secured refinancing, the litigation exposure<\/strong> of significant magnitude, negative changes in the competitive environment, and governance events such as fraud, conflicts of interest, or unexpected senior management turnover.\u00a0<\/p>\n\n\n\n

A particularly important aspect is proactive communication with rating agencies or relevant creditors. Surprise downgrades, those that the market did not anticipate, tend to have disproportionate effects on spreads and instrument prices.\u00a0<\/p>\n\n\n\n

Companies that maintain fluid and transparent communication with their creditors, anticipating potential deteriorations and explaining the corrective measures they are taking, usually manage to have the market process those deteriorations in a more orderly manner. <\/p>\n\n\n\n

A management perspective <\/h2>\n\n\n\n

The credit rating<\/strong> is, ultimately, the market synthesis of a company's ability to honor its financial commitments.\u00a0<\/strong><\/p>\n\n\n\n

But beyond being an external label, its true value for business management lies in the process of obtaining and maintaining it: the discipline of systematically monitoring the indicators that creditors watch, managing the capital structure with a long-term perspective, and communicating the evolution of the business with transparency. <\/p>\n\n\n\n

For companies that aspire to grow, to internationalize, or to execute M&A transactions;<\/strong>, building and preserving a strong credit profile is not a goal in itself: it is an enabling condition to execute the strategy with the lowest possible cost of capital and the greatest available financial flexibility.\u00a0<\/p>","protected":false},"excerpt":{"rendered":"

Credit ratings play a central role: they serve as the indicator the market uses to estimate the likelihood that a company will meet its obligations.\u00a0<\/p>","protected":false},"author":5,"featured_media":250503,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_joinchat":[],"footnotes":""},"categories":[25],"tags":[],"class_list":["post-250497","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/valoriza.com\/en\/wp-json\/wp\/v2\/posts\/250497","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/valoriza.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/valoriza.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/valoriza.com\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/valoriza.com\/en\/wp-json\/wp\/v2\/comments?post=250497"}],"version-history":[{"count":3,"href":"https:\/\/valoriza.com\/en\/wp-json\/wp\/v2\/posts\/250497\/revisions"}],"predecessor-version":[{"id":250504,"href":"https:\/\/valoriza.com\/en\/wp-json\/wp\/v2\/posts\/250497\/revisions\/250504"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/valoriza.com\/en\/wp-json\/wp\/v2\/media\/250503"}],"wp:attachment":[{"href":"https:\/\/valoriza.com\/en\/wp-json\/wp\/v2\/media?parent=250497"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/valoriza.com\/en\/wp-json\/wp\/v2\/categories?post=250497"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/valoriza.com\/en\/wp-json\/wp\/v2\/tags?post=250497"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}