Euler Hermes Rating GmbH » 2. THE PRINCIPLES

2. THE PRINCIPLES

OUR GUIDING PRINCIPLES

In addition to satisfying the highest possible standards of quality, our most important principle is to ensure strict confidentiality. In contrast to equities analysts, rating agency employees are primary insiders.

Further guiding principles are absolute neutrality, consistency and validity in the ratings (long-term approach). The Euler Hermes rating should ideally be stable across an entire sector cycle (“through-the-cycle” approach).

To this end, we particularly evaluate and analyse qualitative factors such as sector and competitive trends, corporate strategy, management quality and the company’s financial flexibility. Moreover, we prepare and discuss stress scenarios for the specific company.

Needless to say, we also factor in national factors as well as the specific characteristics of the individual company and the applicable accounting rules.

Each company is entitled to request non-disclosure of a rating which we award for the first time.

EULER HERMES RATING AT A GLANCE

1. THE BENEFITS

Access to new sources of funding thanks to high-quality ratings

> Benefits of an Euler Hermes rating

2. THE PRINCIPLES

Quality and confidentiality coupled with absolute neutrality.

> Our guiding principles

3. THE PROCESS

The five phases of the rating process at a glance.

> Our rating process

4. THE METHODOLOGY

Objective weighting of quantitative and qualitative factors.

> Our rating methodology