EthiFinance Ratings has a team dedicated to rating corporates. Our ratings reflect the credit quality of rated issuers, that is to say their ability to meet their obligations in time and form.
Our analytical approach
Our overall rating methodology for corporates combines both a qualitative approach and a quantitative approach, at two levels:
- an analysis of the business risk profile of the issuer
- industry risk assessment (growth perspectives, barriers to entry, profitability)
- issuer competitive assessment (scale, diversification, competitive advantages)
- governance and shareholding assessment
- an analysis of the financial risk profile of the issuer through traditional ratios (net adjusted leverage ratio, interest coverage, solvency…)
In addition, EthiFinance Ratings, as a double materiality agency, has a proactive approach when it comes to factoring in ESG in its ratings. As such, ESG is integrated into EthiFinance’s ratings at the following levels: when performing our industry risk assessment, when assessing the issuer profile, and through the assessment of controversies. The impact on the final rating can be either positive or negative depending on the outcome of the assessment.
To ensure the stability and predictability of credit ratings over time, EthiFinance Ratings considers historical data and future trends on a series of qualitative and quantitative factors, without prejudice to possible revisions that may be carried out if EthiFinance Ratings observes any changes that may affect the credit standing of the company.
In addition to its overall corporate rating methodology, EthiFinance Ratings has several specific rating methodologies which can be used either as a complement to the overall methodology or as a replacement, and which cover specific corporates or transactions (social housing, investment holdings, project finance, hotels & leisure…).
Our credit ratings
EthiFinance Ratings provides solicited and unsolicited ratings on European issuers.