Credit ratings that help SMEs and mid-caps grow

OUR CREDIT RATING, THE CORNERSTONE OF YOUR FINANCIAL STRATEGY

A credit rating can be the first step in formulating a strategy that makes you credible to your financial and business partners. A credit rating can be a useful tool for raising growth financing at a fair price, even when interest rates are rising, and securing new contracts.

Take advantage of all available financing options

In a complex scenario that requires companies to make transformational investments to maintain their competitiveness, it is essential to develop a financial strategy that considers not only bank financing but all possible complementary financing options, both public and private.

A credit rating will provide you with a clear diagnosis of your financial situation and allow you to select the type of financing that best suits your growth strategy.

At INBONIS Rating we issue credit ratings which SMEs and mid-caps can use credit ratings issued by INBONIS as a stepping stone for formulating their financial strategy and tapping opportunities that were previously reserved to large enterprises.

Specific credit ratings for SMEs and mid-caps

A credit rating is an expert opinion that measures a company’s capacity to honour its payment obligations in the long term with an initial duration of 12 months, using an alphabetical scale in which AAA is the highest rating and D, the lowest.

This business is tightly regulated in Europe to ensure the independence and quality of the ratings issued. Credit rating agencies are supervised by the European Securities and Markets Authority (ESMA).

What does each notch represent?

Assessment Categories	Creditworthiness Level
AAA	An entity assessed AAA demonstrate excellent capacity to meet its financial commitments.
AA	An entity assessed AA has very strong capacity to meet its financial commitments. It differs from the highest-assessed entity only to a small degree.
A	An entity assessed A has strong capacity to meet its financial commitments but is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than entity in higher-assessed categories. A+An entity rated A+ is in the higher part of the rating range A. AAn entity rated A is within the middle part of the rating range A. A-An entity rated A- is in the lower part of the rating range A.
BBB	An entity assessed BBB has adequate capacity to meet its financial commitments. However, adverse economic conditions or changing circumstances are more likely to weaken the entity's capacity to meet its financial commitments. BBB+An entity rated BBB+ is in the higher part of the rating range BBB. BBBAn entity rated BBB is within the middle part of the rating range BBB. BBB-An entity rated BBB- is in the lower part of the rating range BBB.
BB	An entity assessed BB is less vulnerable in the near term than other lower-assessed entities. However, it faces major ongoing uncertainties and exposure to adverse business, financial, or economic conditions that could lead to the entity's inadequate capacity to meet its financial commitments. BB+An entity rated BB+ is in the higher part of the rating range BB. BBAn entity rated BB is within the middle part of the rating range BB. BB-An entity rated BB- is in the lower part of the rating range BB.
B	An entity assessed B is more vulnerable than the entities assessed BB, but the entity currently has the capacity to meet its financial commitments. Adverse business, financial, or economic conditions will likely impair the entity's capacity or willingness to meet its financial commitments. B+An entity rated B+ is in the higher part of the rating range B. BAn entity rated B is within the middle part of the rating range B. B-An entity rated B- is in the lower part of the rating range B.
CCC	An entity assessed CCC is currently vulnerable and is dependent upon favorable business, financial, and economic conditions to meet its financial commitments. CCC+An entity rated CCC+ is in the higher part of the rating range CCC. CCCAn entity rated CCC is within the middle part of the rating range CCC. CCC-An entity rated CCC- is in the lower part of the rating range CCC.
CC	An entity assessed CC is currently vulnerable to nonpayment that would result in an D issuer assessment and is dependent upon favorable business, financial, and economic conditions to meet its financial commitments.
C	An entity assessed C is currently highly vulnerable. The C assessment is used when a default has not yet occurred but Inbonis expects default to be a virtual certainty, regardless of the anticipated time to default.
D	An entity assessed D has failed to pay one or more of its financial obligations (assessed or unassessed), excluding hybrid instruments classified as regulatory capital or in nonpayment according to terms, when it came due. An entity is considered in default unless Inbonis believes that such payments will be made within any stated grace period.

Can medium-sized enterprises also apply for a credit rating?

Until INBONIS Rating was authorised by the ESMA, the credit rating agencies paid scant attention to small- and medium-sized enterprises, effectively depriving them of access to various sources of financing on an equal footing as the large enterprises. Today, SMEs can get credit ratings within a timeframe and at a price tailored for their needs thanks to our innovative proprietary technology, Refocal, and methodology designed specifically for companies of this size.

Specific methodology

Innovative and proven methodology for SMEs and mid-caps

Disruptive pricing

Between €4,500 and €20,000 per annum for rating issuance and 12 months of monitoring*

Nimble process

10 days. Average issuance period. 4 hours of dedication per rated company

*Depending on the complexity, time commitment and application volumes

Methodology

Our methodology for assigning credit ratings was designed specifically for SMEs. It is robust and it complies with the European regulations. To increase the quality of its ratings at a competitive price, INBONIS Rating has developed proprietary software, Refocal®, nimble methodologies and an advanced risk model integrating ESG factors.

RISK FACTORS ASSESSED

BUSINESS RISKS

Business model
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Growth
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Competition

FINANCIAL RISKS

Solvency
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Profitability
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Leverage
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Liquidity

CORPORATE GOVERNANCE

Shareholder structure
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Management
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Stability

ECONOMIC ENVIRONMENT

Geographical
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Sector

DOWNLOAD CREDIT RATING METHODOLOGY

Report contents

Qualitative assessment

of business, financial, corporate governance and economic environment risks.

Explanatory factors

strengths and weaknesses.

Comparison

between the company and its sector peers.

Credit rating

on an alphabetical scale.

FIND OUT HOW MUCH IT COSTS TO GET YOUR COMPANY A CREDIT RATING

AT INBONIS WE ISSUE TWO TYPES OF CREDIT RATINGS:

Public or official: those that are issued in accordance with regulation (EC) No. 1060/2009 of the European Parliament and of the Council of 16 September 2009 on credit rating agencies and therefore have to be included in the list of rated companies in the following link. Access to the content of the rating reports is restricted to the public and only accessible to third parties by means of a fee-based subscription. Private or confidential: those that are made in response to an individual request (the company itself or another entity) and are not publicly disclosed by either INBONIS or the client.

LIST OF RATED COMPANIES

PROCESS: Getting and renewing a credit rating

Rating analysis and issuance process

1Submission of information by the company.

2In-person or video call meeting with our analysts.

3Notification of the rating assigned and the main explanatory factors.

4Issuance of the rating report.

Monitoring

1One year of ongoing monitoring of the company and its sector for official ratings.

2If there is a significant development, the rating may be updated.

Annual revisions

1Our credit ratings are valid for one year from issuance.

2If you have purchased the renewal service, the rating review process begins 11 months after its original issuance. You can purchase it upfront or during the year.

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