liquidity lifelines


Managing liquidity lifelines

Liquidity is the lifeline of every company originating from cash flow, debt or equity. While banks often are the largest funding providers – especially for SMEs – disintermediation is changing the landscape, pathing the way for new funding opportunities.

Advice at the core of liquidity

Viable funding alternatives have to be identified and evaluated by CFOs and Group Treasurers to cover their ongoing financing and refinancing requirements on their quest of continued stakeholder value generation.

On the back of these developments, alternative funding options are developing rapidly but require thorough insights and experience to find the optimal funding solutions.

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Managing the key to funding

Credit ratings are key to companies proactively managing their funding headroom, access and costs. They are a quality stamp indicating the credit risk related to the ability and willingness of a borrower to service its financial obligations.

The value of ratings is very comprehensive and key to companies as they offer:

  1. Wider, deeper & facilitated funding access
  2. Tangible financing benefits
  3. Increased market and investor stability in times of market distress
  4. Facilitated internal planning, budgeting & benchmarking
  5. Increased bargaining power towards banks, landlords, suppliers and counterparties
  6. A quality stamp covering both the debt and equity side.

Companies often consider ratings as a burden and are not able to extract value from them due to a lack of required expertise and experience. As a result, operational and strategic decisions taken by the Executive Management or Board of Directors very often do not consider the rating impact and its further reaching implications and potential risks on their quest of continued stakeholder value generation.

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