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There is no certainty provided to any party by a rating, either client, broker or regulator.

The best example of this would be Independent Insurance Company that went down with an “A” rating, and at the height of the financial crisis there was a concern that A N Other would close.

What is actually needed is for the Regulator to introduce a “fit and proper” test.

I have already spoken to someone senior at a few of the biggest banks/lenders on this issue and it does not seem to bother them. Therefore, I know that all lenders will not suddenly shut the door on unrated.

As one of the largest said:

“We have no plans to make any changes like this, but if we did, they would certainly not be mid policy and immediate!”