Creditreform Rating

Creditreform Rating

A precise safeguard indicator.

Creditreform Rating

A precise safeguard indicator

  • The rating is the most important element in Creditreform's Business reports.
  • It allows a quick and direct check of a customer's reliability and the probability of default (PD) PD is an indicator of the probability that a company in Germany is downgraded to one of Creditreform's two worst rating levels in the coming year.
  • The index is compiled on the basis of a number of relevant credit markers.
  • A company's credit risk is indicated by a three figure number (between 100 and 600) representing the company's overall level.
  • Creditreform's rating forecasts the following 12 months. 

 

Applying Creditreform's rating to debt management

  • High level of selectivity, avoiding defaults due to insolvency.
  • The basis for categorising partner risk, setting up lines of credit, payment terms and the need for guarantees.
  • Incorporation into the evaluation system.
  • The benefit of objective, external information.

  • Valid report on probability of default using the standard international definitions for default criteria.
  • Mapping on a general internal scale.
  • Modern software for integration into the customer's (management) system.