CRIF Ratings, a CRIF company, is a credit rating agency authorized to assign ratings to non-financial companies based in the European Union in the form of debt instrument ratings and issuer ratings.
The agency is subject to supervision by the ESMA (European Securities and Markets Authority), the authority that contributes to safeguarding the stability of the European Union's financial system. CRIF Ratings is a member of EACRA, the European Association of Credit Rating Agencies.
CRIF Ratings has been recognized as an ECAI (External Credit Assessment Institution) in accordance with European Regulation, enabling all the ratings issued by CRIF Ratings to be used by banks, insurance companies and financial institutions to determine capital requirements for solvency purposes.
The agency team is made up of professionals coming from leading international rating agencies and European financial institutions. Quality and independence guide the agency's operations, supporting the Italian and international financial community.
CRIF Ratings assigns ratings to:
- Corporates (issuer ratings)
- Financial instruments (issue ratings)
The rating process typically involves the top management of the rated company (and, where significant, the owners). The rating provides an independent opinion on the ability and willingness of the issuer to meet its financial obligations fully and timely. The analysis, aimed at assessing the ability to generate sufficient future cash flows to repay the debt, focuses on two main areas:
- business risk: the analysis of the sector the company operates in, its competitive positioning and strategies, as well as the country risk in terms of economic and structural factors and trends
- financial risk: the historic and future analysis of the main economic and financial figures and ratios, cash flows and the financing source structure.
Taking advantage of the analytical and methodological know-how and information assets of CRIF Group, CRIF Ratings offers Credit Assesment, including:
- Private Credit Estimate (PCE): a credit assessment that gives an indication of the creditworthiness of a company or one of its debt instruments in the context of acquisitions, sales, restructuring, or extraordinary debt or capital transactions. It is issued on a private basis at the request of a company or third party. The assessment may help management or investors to identify the impacts of the extraordinary transaction on the creditworthiness of the evaluated company or debt instrument. The PCE can be performed with or without the direct participation of the evaluated subject, and is based on the information provided by the requesting party, together with information from reliable third-parties or public sources.
- Solvency Assessment of Corporates: a confidential assessment of the financial solvency of a non financial company provided
- Solvency Assessment of Public Authority: an independent evaluation on a private basis of the risk of local and regional public authorities and entities with public ownership in general, provided to the evaluated entity. The service involves the collaboration of the public authority undergoing evaluation. The assessment is based on public balance sheet data ('Statement of Accounts') and statistical data published by public sources (e.g. the Ministry of the Interior and the Institute of Statistics)
- Industry analysis: an analysis of industries on a quantitative and/or qualitative basis, using the main macro-economic, balance sheet and credit risk indicators.