What information is required?
During the start-up phase of the rating process the analyst team will send a request for information regarding:
- the history of the company, its organizational structure and corporate governance
- a description of the activities carried out by the company, products and services offered, business model, competitive positioning, and main competitors/peers
- turnover of the company by product/service, business unit, geographical area of sales, and distribution channel
- the company's main clients and suppliers (turnover and acquisitions)
- budget and business plan
- interim reporting/balance sheets for the company (if available)
- information referring to the financial structure and dividend policy
How long does the rating process last?
The rating process starts when the contract is signed and may last, on average, between 6 and 10 weeks. The actual duration often varies by quite a lot; above all it will depend on the availability and ability of the company to collaborate and interact with the analytical team.
How much does a rating cost?
In line with the firewalls required by the Supervisory Authority (ESMA) between the analytical and commercial activities, dealt with by the Corporate Ratings team and Marketing & Business Development team respectively, please contact us for further information regarding pricing.
How can a rating be made public?
To make a rating public it is necessary to make a specific request to CRIF Ratings, which will prepare a press release, to be shared in advance with the company. This press release, together with the entire research, will be published on the CRIF Ratings website.
What does the monitoring of a rating involve?
Monitoring is an ongoing updating process of the rating, which can result in one or more rating actions, and must be performed at least once a year according to EC Regulation. A rating action can also take the form of a confirmation of the issued rating. A regulatory rating must be monitored for at least twelve months. The monitoring process, like that of the first emission, requires interaction with the rated company to acquire the necessary information for the credit analysis.
According to article 8.5 of EU Regulation 1060/2009: "a credit rating agency shall monitor credit ratings and review its credit ratings on an ongoing basis and at least annually, in particular where material changes occur that could have an impact on a credit rating"
What are the Rating Outlook and Credit Watch?
A Rating Outlook is an additional assessment element which provides a direction for the assigned rating over the 24 months following the first issue or from the latest review. The Rating Outlook incorporates potential events and/or expected trends which may impact on the risk factors underlying the rating, but which, on that date, are not certain. The Outlook can be:
- STABLE: the rating will tend to remain unchanged;
- NEGATIVE: the rating may be downgraded;
- POSITIVE: the rating may be upgraded;
- EVOLVING: it is not yet possible to define in which direction the rating will change.
A rating may be placed under Credit Watch when circumstances arise that could potentially impact on the assessment and which require further investigation, making revision likely, but not certain. Placing a rating under Credit Watch is a temporary status which does not invalidate the rating and which must generally ends within 6 months of the Rating Action unless the possibility of procastinate it furtherly for two successive eventual periods of three months.
Credit Watch can be:
- NEGATIVE: the effect on the rating may be negative;
- POSITIVE: the effect on the rating may be positive;
- EVOLVING: the effect on the rating cannot be defined as yet.