25 years: Treasury & ratings
In this video, Gurdip describes how the Financial Strength Rating is used as an anchor rating and why there is often a rating differential between the holding company and its subsidiaries.
In this video, Gurdip describes how the Financial Strength Rating is used as an anchor rating and why there is often a rating differential between the holding company and its subsidiaries.
12 mins 44 secs
The Financial Strength Rating is used as anchor rating to derive the senior unsecured bond rating, subordinated debt rating and hybrid capital rating. The Financial Strength Rating itself is based on the rating agency criteria.
Key learning objectives:
Identify how a financial strength rating is used as an anchor rating
Understand why there is often a rating differential between the holding company and its subsidiaries
Understand what a financial strength rating is