What is the difference between a company getting a credit rating or an Independent Business Review? In both cases the company is paying an external company to assess their credit worthiness, and they both need co operation with the sponsor for confidential information, so I can't see the difference. thanks
Hi pinkpoodle2820 In both cases, it would be helpful to ask the question: "Who is the end user of the information and what will they use it for?" A credit rating will be of interest in GENERAL decision-making to a relatively wide group of stakeholders - for example banks, creditors and both current and prospective shareholders. It GENERALISES the company into a single rating - for example "AA". An independent business review is prepared for a SPECIFIC party - for example the trustees. And for a SPECIFIC purpose - for example usually to pinpoint whether and when the company could pay contributions to the pension scheme. Hope that helps. Best wishes Stuart Stuart Underwood ActEd Tutor
