Maren joined the insurance practice division of Standard & Poor's three years ago from the capital markets team at risk management consultancy Aon. She is a graduate in European business administration from the European Business School in London and has an MSc in finance from London Business School.
Why the switch to a career in credit ratings?
At Aon, I was structuring and pricing catastrophe bonds, which help insurers transfer the insurance risk of natural catastrophes such as earthquakes and hurricanes to the capital markets. It was interesting but mostly technical, and I didn't have as much access to clients. At Standard & Poor's I have regular access to senior company management, I'm dealing at a much more strategic level, and have access to the 'big picture' side of things.
What does your current job involve?
A lot of preparation goes into issuing a rating – I meet with senior executives at client companies, and talk through the structure of their proposed credit products. When I've analysed the transaction and reached a decision about which rating to suggest, I'll write a paper that is reviewed by our voting committee before the rating is allocated. I also spend a lot of time talking to investors about ratings we've already issued and the rationale behind them.
What's the most challenging aspect of your role?
Issuing a rating isn't just a question of knowing about the company in question – you also need to know about the market, so you can never do too much research. When a client is downgraded, it can also have big implications for their business and they can become confrontational. It's difficult to deal with but we're trained to handle these situations.
What kind of person makes a good ratings analyst?
You need to be opinionated, analytical and to enjoy interacting with people at all levels. You also need to be independent and able to get things done autonomously.
Maren's tips:
- Get a good financial foundation before applying – my MSc in finance was an excellent preparation for dealing with the complex financial products that underpin ratings.
- Try to build practical experience in the area in which you'd like to work first – my previous experience at Aon enabled me to understand the market I'd be rating.
- Language skills are highly valued – an analyst working in the London office can cover companies headquartered in Europe and the Middle East, for example.
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