We analyse creditworthiness from the perspective of a conservative credit investor. The focus is not on the opportunity but on the issuer’s ability to settle its financial liabilities within the agreed periods.
RATINGS MUST BE RELIABLE
Insurance companies, providence funds and pension funds must invest their customers’ capital in secure assets. Historically, corporate debt investments have not figured prominently amongst core investments. However, with the changes sweeping across the bank market, companies are increasingly turning to the capital market. Euler Hermes Rating has been assessing companies’ creditworthiness since 2001. Our core skills entail credit ratings for corporate debt issuers and instruments (bonds, promissory notes, profit-participation certificates etc.). We see our task as providing investors with the necessary transparency with respect to the risks arising from corporate debt investments.
To this end, we conduct a detailed analysis of the issuer’s business model and the risks to which it is exposed as well as the creditors’ position and cover ratios in the event of default. This includes an investigation of the business risk in terms of the applicable sector risk and market and competitive position of the company as well as its management, strategy and governance. The purpose of our analysis is to provide an assessment of the issuer’s future ability (and willingness) to settle its financial liabilities within the agreed periods.
Over the last few years, we have built up an excellent track record, which is published in the transition analysis.
Here you will find more information on the rating methods applied by Euler Hermes Rating.
Detailed information on Euler Hermes Rating’s reliability.