FIG practice at big 3 CRA pros, cons, exit opportunities

Hi all,

I’ve read a number of topics on different forums regarding the FIG experience of the IBD analysts, however didn’t find much about the FIG group at the big 3 credit rating agencies (CRA). Some particular questions I am interested in: 1) What are the pros and cons of working for FIG vs Corporate (HY, IG)? 2)Will the person with a CRA FIG experience have a good skillset to join FIG PE (e.g. J.C. Flowers & Co, Corsair Capital…), buy-sell-side research firms, corporate banking? 3) Particularly, are they doing any modelling at the CRAs (FIG practice)?

Some people here with a FIG experience from the CRAs?

What’s a CRA cuz?

Credit rating agencies.

Are you interviewing at CRA FIG? Why are you interested in CRA if you are already considering the exit opptys?

CRAs are cesspools, most people don’t last more than two years and extremely political. Only take it as a last resort if you don’t have anything else.

What’s up with all the questions lately that say “should I take a job in field X, but I actually want to work in field Y”?

What are the reasons of thinking that CRAs are cesspools? Based on the statement that most people don’t last more than two years at CRA, I can make the same conclusion about Big 4 (EY, PwC, etc…). However, I think the experience people are getting there provides a springboard for the next career opportunities. On the other side, I can definitely understand a point regarding political nature of the CRAs. But how about getting skills such as financial modelling, financial statements analysis, having opportunity for the contact with the senior management of the companies, other analysts from financial firms, etc? Is CRA a descent place for someone at the beginning of his career and with a dream to get into private equity/buy-,sell- side research?

What are the reasons of thinking that CRAs are cesspools? Based on the statement that most people don’t last more than two years at CRA, I can make the same conclusion about Big 4 (EY, PwC, etc…). However, I think the experience people are getting there provides a springboard for the next career opportunities.

On the other side, I can definitely understand a point regarding political nature of the CRAs.

But how about getting skills such as financial modelling, financial statements analysis, having opportunity for the contact with the senior management of the companies, other analysts from financial firms, etc? Is CRA a descent place for someone at the beginning of his career and with a dream to get into private equity/buy-,sell- side research?

sometimes it is very difficult to get into some field without having relevant previous experience. So the question is if FIG at one of the big 3 CRA can be seen as a relevant experience for private equity focused on FIs, buy-, sell-side research firms?

I’ve definitely seen people move from CRA to the buyside/ss research but it’s a hard move, you can definitely learn valuable skills if you cover certain industries. It’s very hard to change the perception of CRAs as they are typically regarded less than banks and other financial institutions hence why I said you should take it only as last option if you have anything similar somewhere else.

OP have you seen the Big Short?

I’ve read the book. No discussion here, CRAs are to blame for not uncovering risks in time. However, it was mostly related to the structured finance. Corporate ratings models and FIG models are quite decent, based on the cumulative defaults rates for the investment grade entities. The CRAs reputation is not the best, but that is true for the finance industry in general. I am focusing more on the skills one can learn working for the CRA. It would be very interesting to hear somebody with the CRA experience. Is there anybody here?

I had a short stint there hence my strong opinion for CRAs, you are correct the issue was mostly with the structured credit division that turned a blind eye to the default correlation in their models due to revenue reasons obviously. You are also correct the corporate rating model and experience is still valuable. Again my point is that it is very hard to change the perception in the eyes of recruiters and employers since they tend to lump everything together so it is a hard thing to get past when you are trying to make the jump.

For all intents and purposes, take the role in the corporate ratings division if it’s between that and fund accounting or back/middle office job.

why FIG brah? its a really specific skillset

Thanks for the advice.

I know that. Position was opened for FIG, unfortunately there were no positions opened for corporate finance department.

CRAs are gash bro. I work in FIG Credit at Bank…much better and more interesting.

Could you describe in short your main responsibilities? And what are you doing day-to-day? Particularly I am interested in skills one needs to get into Credit Department (FIG focus) at a bank.

Theres plenty of blame to go around man, it wasnt just the CRAs.