Improving business management

Know your financial situation to make progress

A credit rating helps medium-sized enterprises to improve their own management because it allows them to identify their strengths and vulnerabilities; to take corrective actions to overcome their weaknesses; and to measure their progress.

How to identify weaknesses
and strengths
with a credit rating?

In its Credit Rating Report, INBONIS includes, in addition to the rating of the SME’s credit quality on an alphabetical scale – where AAA is the highest rating and D is the lowest – a detailed study carried out by INBONIS RATING’s team of expert analysts in credit assessment, with an explanation of four risk factors:

  • Business risks – Economic model, Growth and Competitive situation.
  • Financial risks – capitalization, profitability, indebtedness and liquidity
  • Shareholders and governance – shareholding, management and stability
  • Economic Context – Geographic and Sectoral



How to measure improvements
in the management
management improvements?

What cannot be measured cannot be improved. That is why, once the failures have been detected through the Credit Rating Report, corrective measures have been taken and the company has improved its situation, the company can request a review of its rating. This review will serve to check its achievements in improving the management of the company and will allow it to further improve its management.

A credit rating has a maximum duration of 12 months, after which it must be reviewed. The rating grade or rating step is in effect each day that a company is rated. It is not static, but can change at any time if the circumstances of the rated company change.

INBONIS monitors the evolution of each company and its sector and, depending on the current situation, and if significant milestones that may indicate a change in credit quality are identified by INBONIS analysts, the rating issued may be revised.



How to improve financial
communication with
financial andand business partners?

Displaying a positive credit rating with financial partners helps to improve and streamline communication with business partners, and can facilitate the securing of certain business transactions.

Reputation is one of the company’s intangibles. A positive credit rating can enhance that reputation, not only in terms of demonstrating the creditworthiness of the company itself, but also in terms of professionalism, transparency and good management.

In addition, a credit rating can help clients negotiate a better price for the underwriting of commercial transactions, since lower risk means a lower probability of non-payment.