CFA® Charter: Open career opportunities with credit rating agencies

The wealth management industry is changing. The expectations and preferences of the next generation of investors have been shaped by new technologies and digitalisation. These changes have introduced new standards in terms of the provision of advice and investment products today. The affluent middle class population is growing. According to the World Economic Forum, 80% of India’s population will be in the middle class segment by 2030, up from around 50% in 2019. This increase in disposable income will only increase the wealth management needs of investors at short term. future. These factors have led to a growing demand for skilled investment professionals to perform a variety of demanding jobs across the value chain, from risk management, financial reporting and analysis, corporate finance business, from equity investing and corporate governance to portfolio management, wealth planning and performance measurement. . With increasing investor portfolios, an upcoming area for career growth is emerging in credit rating agencies.

Credit ratings
In India, credit rating agencies have been around for nearly three decades, employing professionals who rate credit instruments ranging from bonds and loans to transfer certificates and structured credit. Credit rating in simple terms is an opinion of the relative ability of an individual or business to meet financial commitments, such as interest, preferred dividends, principal repayment, insurance claims, or counterparty obligations. As Indian credit markets continue to grow, the role of rating agencies is expected to expand.

Therefore, for talents who wish to pursue a career in this field, it is useful to understand the wide range covered by credit scores in India. They mainly include corporate ratings, financial ratings and structured financial ratings. In a webinar hosted by the CFA Institute, Sitaraman Iyer, CFA, delved into key insights into roles and career avenues in credit rating agencies. As he explains, “The corporate and financial sectors require high qualitative and quantitative skills. You need financial modeling skills, an ability to read balance sheets, write and communicate well, calculate numbers, analyze management decisions and explain reports.

Click here to watch the full webinar.

Career options

Education diplomas

How to make your way into this career space

Roles and Remuneration

Lack of key talent

“Rating agencies today struggle to find qualified candidates who possess key technical skills, knowledge and skills and who display professional and ethical standards,” Iyer shares. Some basic skills and competencies needed to work with a rating agency include attention to detail, ability to read loan documents, quickly understand industries, knowledge of business models and financial modeling, good report writing and manage pressure and tight deadlines.

CFA^® Program

The CFA program bridges current practices, investment theory, and ethical and professional standards to provide real-world skills in advanced investment analysis and portfolio management. The curriculum is updated annually and covers a wide range of topics including securities analysis and valuation, international financial statement analysis, quantitative methods, wealth management, portfolio analysis, corporate finance and economics. The CFA program focuses on structured finance, which is especially useful in credit rating roles.

Earn a CFA
^® The charter is a highly selective process granted only to those who have completed the CFA program as well as the work experience requirements. CFA
^® charter holders distinguish themselves as professionals with a high commitment to upholding higher standards of excellence in the performance of their duties. They fulfill multiple roles, such as asset and wealth management, investment banking, commercial banking, and advisory, as well as a range of career paths even outside of industry, such as fintech.

In a growing economy with a favorable regulatory environment, growing urbanization, and a burgeoning middle class, the need for high-performing talent has reached an all-time high. Employers seek to hire professionals who represent the best in the investment management industry. The CFA program is the professional standard of choice for more than 31,000 investment firms worldwide. It can be taken not only by practicing investment professionals, but also by students who are changing careers or considering a career in this field. Learn more about the CFA program here.