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May 17, 2021

SME rating, a formula for investors to broaden their social impact

The decisive role that funds have historically played in the growth of the economy and employment through their investment in the productive fabric is undeniable. Today, funds can increase their social impact by focusing on companies in sectors that are necessary for the country’s economic recovery in order to contribute to the exit from the crisis.

To facilitate the recovery of the economy, INBONIS has identified the 20 sectors most needed for economic recovery after the pandemic. Of the 20 sectors, 11 are occupied by medium-sized companies, so the number of companies to be financed is limited: a total of 700 medium-sized companies represent a strategic support to mitigate the crisis in the medium term.

Three variables have been taken into account in the selection process: the essential nature of the products or services (basic necessities), the severity of the impact on income generation and production capacity, and the financial vulnerability to withstand the crisis and recover their activity.  Thus, in addition to essential sectors in terms of basic necessities (e.g. health, food, water), there are other sectors of interest to investors that are also vital for the smooth functioning of the economy in times of crisis (e.g. research, production, repair, transport).

Asset managers can request rating packages on these companies in order to offer them financing or pro-active equity participation if they wish to support the national recovery.

INBONIS Rating provides asset managers and institutional investors with independent, reliable, agile and up-to-date opinions on the ability of an SME to meet its payment obligations at a price commensurate with the size of the SME analysed, between 5,000 and 15,000 euros. This rating not only helps in deciding which companies to invest in, but also in pricing private debt issued by SMEs.

The rating agency specialising in medium-sized companies can issue a reliable rating in just 7-10 days thanks to the use of Refocal@ technology, a proprietary software that uses both qualitative and qualitative data to facilitate the work of our expert risk analysts.