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RatingRatings evaluate a company’s creditworthiness and settlement risk. They help stakeholders such as potential creditors, investors and suppliers to obtain an overview of the profitability of or of cooperation with the company and can be used as a basis for negotiating loan and contract conditions. Ratings use business data to gather information on a company’s liquidity, performance and development. Prior to lending funds to a company, banks are legally required to complete an internal rating. This rating is for internal purposes only and is not published. However, companies can commission reliable agencies with creating an external rating that can be published and used for marketing purposes to increase the company’s attractiveness to customers, suppliers, investors and creditors. Such a rating can be based on hard facts from accounting, but also on soft facts such as the company’s management and human capital.
Weaknesses that impede positive rankings are identified as early as during the preparation of the ranking. You are thus able to counteract negative conditions with banks and creditors early on. |
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