Says Lisa Hall, communications director, Standard and Poor’s (S&P), “Our aim is to provide timely, objective and accurate opinions on various corporates to the market. These comprise upgrades as well as downgrades of a company's rating. Sometimes the news isn't always positive.”

For credit ratings firms like S&P the job is often perilous; these firms risk falling foul of sovereign governments for downgrading their ratings. Further an error of judgement may deal a great blow not only to the rated organisation but also to S&P.

How do these firms ensure their credibility? “Presenting the information in an accurate and timely manner is the way out,” replies Hall.

“Our ratings are subject to intense scrutiny by investors and other market participants every day. Their views are the ultimate test of our credibility. We constantly re-evaluate and improve our ratings criteria and methodology to ensure we provide the most accurate, timely and relevant information for investors,” she elaborates.

That is how credit ratings agencies attract stakeholders like investors, issuers and others. “The volatility and complexity of the current market situation makes the need for our independent research and analysis more relevant than ever. S&P has been instrumental in helping markets evaluate and assess credit risk, price debt securities, benchmark debt issues and create a robust secondary market for those issues - to the benefit of investors and issuers alike,” says Hall.

Nevertheless S&P did have some anxious moments in the Enron issue as its role was questioned. S&P had then said that Enron did not disclose the debt-like nature of certain structured finance transactions and their effect on Enron’s financial situation.

Speaking about handling crisis situations, Hall says that S&P’s main objective is to fully cooperate with investigators, disclose all information and be transparent, open and honest in all communications.

According to her an organisation should have a crisis communications plan in place so that a crisis does not catch it on the backfoot. “Not to get panicky is her prescription while handling communication during a crisis.”