A company rating is used to assess the future viability of a company and, through the rating grade determined, makes a statement about the creditworthiness or reliability of the company as a business partner in the value chain.
The company rating includes the awarding of a rating based on quantitative and qualitative criteria and the preparation of a rating report. The quantitative criteria are key figures on the assets, earnings and financial situation, which are determined for the company on the basis of three annual financial statements and their quality is assessed. In the case of new companies or significantly changed company structures, a medium-term business plan can also be used as the basis for the rating. The qualitative criteria examine both external factors such as industry, market position and the regulatory framework, as well as internal factors such as strategy, management, employees, organization and processes, planning and control and financial policy.
A rating report presents the company profile. The characteristics of the qualitative criteria in the company are explained in detail and summarized in a strengths and weaknesses profile with transparent weighting of the individual criteria. The quantitative criteria in the form of the key figures determined for the company are presented in a structured and transparent manner. For the purposes of cross-company comparison (benchmark), the report contains industry key figures that are determined on the basis of the Deutsche Bundesbank database. The rating grade is certified and the result is commented on in summary.
The best-known corporate rating to date is BASEL II. The global banking crisis in 2008/2009 revealed weaknesses in this rating concept. BASEL III and IV were therefore developed.
See also: Risk management
Reference to QET guidelines: T19 Rating