Creating a positive outcome for an established construction firm looking to restructure, which has the potential to negatively impact ratings.
Headlines
- Established company looking to maintain the value of their business during a restructure
- Restructures can negatively impact ratings, affecting working capital, credit terms and tendering
- Firms in the construction sector are particularly sensitive to ratings changes
The situation
This established housebuilder was looking to change the structure of their company and sell the assets into an Employee Owned Trust (EOT). Construction firms are particularly sensitive to rating changes as they can directly impact their working capital through trade credit terms and affect their ability to tender for work.
What we did
Our focus was on risk assessment with an objective to maintain the ratings that they had helped them to build over the previous 2 years. Through explanatory and insightful work with the agencies, their ratings and limits were maintained, and in some cases marginally improved. This provided the stability needed to successfully transition to the new trust structure without any financial risk to the business.
The outcome
Restructuring a business can have a negative impact on ratings, and without any intervention in this situation their scores would inevitably have dropped, impacting the value of the business. By leveraging credit improvement, they were able to avoid any decline in their scores and maintain the viability of their plans to continue dominating their operating sector and winning more high-value tendered projects.
Quote
Having worked with Lightbulb Credit before, we asked them to help us with a specific activity that would support our future growth potential. As before, they delivered exactly what we needed quickly and efficiently, once again creating a positive outcome for our business.
- Managing Director
Corporate credit improvement service
Our credit improvement service provides businesses with a solution to improving their trade credit rating. The process is simple and fast, with improvements regularly achieved in a matter of days. The service is also completely risk-free as the business only pays on agreed results and clients have the reassurance that all cases are handled with complete confidentiality.
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