Credit Assessment Program

One form of credit enhancement available to Wisconsin health care and education borrowers is to obtain a bond rating for the debt they issue. If a rating in the investment grade category can be obtained, substantial cost benefit in terms of lower interest rates and costs of issuance can occur.

By knowing its rating before a financing is imminent, a borrower can develop a more appropriate borrowing structure. The borrower can also work on its indicated strengths and weaknesses to maintain or improve its rating prior to its next financing.

In order to bring a rating assessment process to more Wisconsin borrowers, WHEFA has developed a credit assessment program.

Borrowers interested in receiving a credit assessment will prepare a credit package of financial, demographic, and operational data detailing their recent historical operations. If specific near-term capital needs and borrowing requirements have been identified, they will also be detailed. The borrower will interview up to three rating agencies (Fitch, Moody's and Standard & Poor's) to discuss the scope of the assessment, anticipated reports and analysis to be received, and negotiate the cost to complete an assessment. Once a rating agency is selected, a review of the credit package ensues including a telephone conference which provides the opportunity for additional insights and information to be shared.

The process culminates with the issuance of a written credit assessment report which:

a) Highlights the strengths and weaknesses of the borrower which led to this rating.
b) Lists actions or improvements which, if made, could result in a more favorable rating when actually applied for.
c) Identifies the current most likely rating category of the borrower.
d) If a borrowing is imminent, a debt capacity analysis will also be performed so the borrower will know the limits of its borrowing capacity before its potential credit rating is compromised.

In many instances financial assistance to pay a portion of the credit assessment fee will be available from WHEFA.

WHEFA is available to help develop the credit package, expedite rating agency selection and actual credit reviews, and assist in any follow up financial planning by the borrower.

The forms necessary to complete your credit assessment review package are located below, or if you prefer, we can send them to you.

We feel this program has great potential for improving the financing process for many of our constituents. We urge you to consider its use.

Credit Assessment Applications