Credo line
Encyclopedia
History
Information and Rating AgencyCredit rating agency
A Credit rating agency is a company that assigns credit ratings for issuers of certain types of debt obligations as well as the debt instruments themselves...
Credo Line was established with support of foreign export credit agencies and Ukrainian partners in June 2008 with the view to achieving maximum transparency on the information market of CIS
CIS
CIS usually refers to the Commonwealth of Independent States, a modern political entity consisting of eleven former Soviet Union republics.The acronym CIS may also refer to:-Organizations:...
countries and qualitative improvement of rendered services. The described support is explained by utmost necessity of establishment of an objective, independent and specialized rating agency
Credit rating agency
A Credit rating agency is a company that assigns credit ratings for issuers of certain types of debt obligations as well as the debt instruments themselves...
, professionally able to credit assess risks
Risk assessment
Risk assessment is a step in a risk management procedure. Risk assessment is the determination of quantitative or qualitative value of risk related to a concrete situation and a recognized threat...
of importing enterprises located in Ukraine
Ukraine
Ukraine is a country in Eastern Europe. It has an area of 603,628 km², making it the second largest contiguous country on the European continent, after Russia...
, as well as throughout territory of the CIS
CIS
CIS usually refers to the Commonwealth of Independent States, a modern political entity consisting of eleven former Soviet Union republics.The acronym CIS may also refer to:-Organizations:...
region. Now and then it’s a privately-owned company with 100% Ukrainian capital, run since the foundation date by the general Director Ms. Katerina Bogdanenko .
The Agency’s Goal is to systematize and discipline the beneficial multilateral foreign economic relations between foreign partners and CIS
CIS
CIS usually refers to the Commonwealth of Independent States, a modern political entity consisting of eleven former Soviet Union republics.The acronym CIS may also refer to:-Organizations:...
partners on all of cooperation stages. Different mentality, various approaches to business conduct, different legislative base, accounting standards should not be a barrier while any international transaction between mentioned parties, and with its services’ complex Credo Line is putting every effort to facilitate such multicultural business collaboration.
Services
The main Agency activity line is credit rating assignment, which can be short-term or long-term, depending on the strategy and goals the rated Company/Group of Companies pursue/s.Creditworthiness investigations with subsequent credit opinion definition may be initiated by the rated company or by the interested counteragent (potential partner/existent business partner/financial institution which acts as a mediator between the rated company and other interested party etc.)
So, Credo Line is elaborating different kinds of creditworthiness’ investigations, such as:
- Status Credit Rating Report
- Status Credit Report
- Status Credit Report of a Bank
Apart from credit rating
Credit rating
A credit rating evaluates the credit worthiness of an issuer of specific types of debt, specifically, debt issued by a business enterprise such as a corporation or a government. It is an evaluation made by a credit rating agency of the debt issuers likelihood of default. Credit ratings are...
products, the Agency is rendering its clients different analytical products, always different by their nature and set goals. Basing on the client’s requirements, needs, deadlines etc. the Agency prepares such reports:
- Status country report
- Status business trend report
- Status monitoring report
- Status market report
- Others information-analytical reports
Ratings & Rating scale
In the process of credit rating assignment the Agency uses its own complex methodology. Agency’s rating methodology is based on a special balanced system of indexes, which includes an influence of country riskCountry risk
Country risk refers to the risk of investing in a country, dependent on changes in the business environment that may adversely affect operating profits or the value of assets in a specific country...
and is recognized by leading export credit agencies and other financial institutions.
The completeness of indexes list used in the process of evaluation of a company's financial position and performance (absolute indexes, financial stability ratios, solvency ratios, profitability ratios, efficiency ratios, insolvency ratios) and special procedure of reliability audit and correctness of forming basic data allow to evaluate financial position and performance of a rated company in the most objective way.
Moreover, the given methodology is particularly adjustable within the trade financing processes and enables to accurately determine the maximum value of rating and maximum amount of credit limit.
Scale of credit rating used by the Agency analysts was elaborated as well by the Agency itself for the purpose of estimation of creditworthiness, the level of financial stability, aptitude towards country risk, as well as nonpayment risk of a rated company. Like others world-wide credit rating agencies (the so-called ‘Big three credit rating agencies
Big Three (credit rating agencies)
The Big Three credit rating agencies are Standard & Poor's , Moody's, and Fitch Group. S&P and Moody's are US-based, while Fitch is dual-headquartered in New York City and London, and is controlled by the France-based FIMALAC. The European Union has considered setting up a state-supported EU-based...
’ - Standard & Poor's
Standard & Poor's
Standard & Poor's is a United States-based financial services company. It is a division of The McGraw-Hill Companies that publishes financial research and analysis on stocks and bonds. It is well known for its stock-market indices, the US-based S&P 500, the Australian S&P/ASX 200, the Canadian...
, Moody's Investor Service
Moody's
Moody's Corporation is the holding company for Moody's Analytics and Moody's Investors Service, a credit rating agency which performs international financial research and analysis on commercial and government entities. The company also ranks the credit-worthiness of borrowers using a standardized...
and Fitch Ratings
Fitch Ratings
The Fitch Group is a majority-owned subsidiary of FIMALAC, headquartered in Paris. Fitch Ratings, Fitch Solutions and Algorithmics, are part of the Fitch Group....
), Credo Line uses the same internationally-recognized letter designations such as A, B, C and D.
! scope="col" style="background:#efefef;" | Rating
! scope="col" style="background:#efefef;" | Description
|-
!style="text-align:center" |crAAA
|Excellent creditworthiness and financial stability. The company is affected by country risk weakly. Risk of default or delayed payment is exceptionally low.
|-
!style="text-align:center" |crAA
|Excellent creditworthiness and financial stability. The company is affected by country risk. Risk of default or delayed payment is very low.
|-
!style="text-align:center" |crA
|Excellent creditworthiness and financial stability. The company is affected by country risk strongly. Risk of default or delayed payment is low.
|-
!style="text-align:center" |crBBB
|High creditworthiness and financial stability. The company is affected by country risk weakly. Risk of default or delayed payment is low.
|-
!style="text-align:center" |crBB
|High creditworthiness and financial stability. The company is affected by country risk. Risk of default or delayed payment is moderate.
|-
!style="text-align:center" |crB
|High creditworthiness and financial stability The company is affected by country risk strongly. Risk of default or delayed payment is below average.
|-
!style="text-align:center" |crCCC
|Average creditworthiness and financial stability. The company is affected by country risk weakly. Risk of default or delayed payment is average.
|-
!style="text-align:center" |crCC
|Average creditworthiness and financial stability. The company is affected by country risk. Risk of default or delayed payment is above average.
|-
!style="text-align:center" |crC
|Average creditworthiness and financial stability. The company is affected by country risk strongly. Risk of default or delayed payment is high.
|-
!style="text-align:center" |crDDD
|Low creditworthiness and financial stability. The company is affected by country risk weakly. Probability of bankruptcy.
|-
!style="text-align:center" |crDD
|Low creditworthiness and financial stability. The company is affected by country risk. Probability of bankruptcy is high.
|-
!style="text-align:center" |crD
|Low creditworthiness and financial stability. The company is affected by country risk strongly. Bankruptcy is expected.
|-
!style="text-align:center" |NoR1
|No credit rating is given due to lack of data for analysis.
|-
!style="text-align:center" |NoR2
|No credit rating is given due to the company insufficient period of existence.
|-
!style="text-align:center" |NoR3
|No credit rating is given due to the fact the company is in process of bankruptcy or had ceased its activities.
|-
!style="text-align:center" |NoR4
|Withdrawal of rating by Agency.>
For every literal rating meaning corresponds definition, which disclose the reliability level, risk character, as well as the forecast of further business development. For instance: crBB – High creditworthiness and financial stability. The company is affected by country risk
Country risk
Country risk refers to the risk of investing in a country, dependent on changes in the business environment that may adversely affect operating profits or the value of assets in a specific country...
. Risk of default or delayed payment is moderate.
Rating categories from “cr AAA” to “crDD” may be modified with plus or minus sign. For example: there are three rating levels "crAА+", "crAА" и "crAА-" in the rating category “crAA”. Rating “crAА+" is just over “crAА “.
Moreover, the Agency has developed and implemented four additional categories (NOR1, NOR2, NOR3, NOR4), which reflect the reasons of rating assignment impossibility for target company, among which there are lack of necessary information about target company, limited duration of company’s existence, etc.
Partners
Main strategic partners of the Agency are foreign export credit agencies (ECAs), exporting companies, international and local banks, factoring companies, collecting agencies and others international financial institutions.Within such partnership Credo Line seeks to contribute to promotion of better trade relations between Ukraine
Ukraine
Ukraine is a country in Eastern Europe. It has an area of 603,628 km², making it the second largest contiguous country on the European continent, after Russia...
and international business community.
See also
- Export credit agency
- Trade credit insuranceTrade Credit InsuranceTrade credit insurance, business credit insurance, export credit insurance, or credit insurance is an insurance policy and a risk management product offered by private insurance companies and governmental export credit agencies to business entities wishing to protect their balance sheet asset,...
- World-wide credit rating agencies