UK
Well-rated agencies?
16 May 2007
Anonymous
Pay at ratings agencies isn't great compared to banks, but they're supposed to offer a better lifestyle. That's only partly true.
That ratings agencies pay less than banks does seem to be the case. While banks are well known for dishing out bonuses that equate to salaries for structured credit analysts and the like, bonuses at ratings agencies rarely hit more than 50%.
In fact, London-based recruiters say an intermediate-level credit analyst at a ratings agency can expect to earn between £60k and £65k with typically a 20% bonus.
So why would anyone work for a ratings agency? It's all down to training and variety of work, according to Standard & Poor's (S&P). "We provide more rigorous training than they will get anywhere else…," says Martin Winn, S&P's director of communications. "Employees will get a much broader experience than at an investment bank."
Rumour has it that ratings agencies are also more chummy places to work than investment banks. But one credit analyst who's done both says this isn't entirely true: "They get you there with claims that you'll work less hard, but after a few months you realise this is rubbish, and you might as well be paid more working for a bank."
However, Adam Seward, head of recruitment at Fitch Ratings, says it's all wrong to think that working for a ratings agency means working less hard. "We try to focus on providing challenging roles and the opportunity to develop… It's more about that than work/life balance," he says.
Ratings offer great experience and an opportunity to move into a better bank, but should be seen as a temporary path. Stay too long and you are tainted with being not 'deal focussed' and as no good for IB.
The experience will buff up a tarnished CV, especially those with no UK experience or those with academic but little practical experince, just don't kid yourself you can walk into any banking role after - a large product knowledge gap awaits.
Lastly beware the great base salaries at ratings at mid-snr level mask bad bonuses and lack of opportunity for career progression.
An Investment Bank will never match a Ratings VP on a 85-100k basic if they have no trasaction or products skills, no matter how good you are!
anon 16 May 2007
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