Q. How do you define a “Rating Agency”?
A. RATRIX
does not limit the definition of “rating agency” to the
financial markets. While Moody’s and S&P are well-established
rating agencies, other rating agencies already exist in other consumer
and institutional markets. RATRIX defines
as a “rating agency” any high-quality, independent and impartial
ranking service that disseminates its summary opinions into the public
domain. With few exceptions, rating agencies are independent companies
without government mandate or interference, and depend upon sustained
performance and public debate to flourish.
Q. What are the first steps in creating a rating
agency?
A. Since prospective market demand for
an independent, objective benchmark should be confirmed in advance,
RATRIX recommends that companies begin
the process by doing a feasibility study. Because true rating systems
often include controversial low ratings, they must be legally and structurally
independent to ensure absolute objectivity. Finally, prospective sources
of revenue need to be analyzed to ensure economic viability of the operation.
Q. Will RATRIX help companies produce financial
ratings that compete with Moody’s or S&P?
A. RATRIX
does not target markets that are dominated by established providers
such as the financial rating agencies. When appropriate, however, RATRIX
will provide its in-depth experience in order to assist clients in approaching
the financial rating agencies or other interested parties to form strategic
affiliations or joint ventures.
Q. Can rating systems help established companies
differentiate their product offerings?
A. Absolutely. Many service companies
benefit from the accurate benchmarking of their markets in order to
demonstrate the need for, and the success of, their remedial programs
and services. Companies with high-quality products and business practices
also benefit from independent and public corroboration of the quality
of those goods and services.
Q. Will RATRIX provide start-up financing
to develop new rating agencies?
A. RATRIX
and its affiliates will consider making cash, “sweat equity”,
and other forms of investment in rating agencies and related services.
RATRIX will also identify other sources
of investment capital and strategic alliances that are familiar with
rating agency dynamics and that might be helpful in establishing new
rating systems.
Q. What job opportunities are available at RATRIX
and its affiliates?
A. RATRIX
seeks to add to its roster professionals with rating and related experience.
Please contact RATRIX by email if you feel that you might qualify. All
inquiries will be treated in confidence. RATRIX
maintains its principal executive offices in Bedminster, NJ.
