3. THE PROCESS

OUR RATING PROCESS

Our rating process can be roughly divided into the following five phases:

1. Informal preliminary discussions
2. Analytical preparations
3. Visit to the company
4. Analysis and rating decision
5. Notification and, where applicable, publication

The purpose of the preliminary discussions is to provide the unrated company with an indication of the individual rating phases, the documents required, the main elements of the rating interviews and the rating procedures and costs.
During the analytical preparations, our analysts acquaint themselves with the company on the basis of the information submitted.

During the interview held at the company’s offices, the management presents the company and its business model to the rating analysts so that we gain a comprehensive appreciation of its strategic orientation and plans. The on-site interviews regularly take one or two days.

This is then followed by the actual rating analysis on the basis of the information provided.
The decision on the rating to be awarded is made by the rating committee, which is made up of other sector specialists as well as experienced analysts and/or directors.

Then we notify the company of the rating which we have awarded it and explain and justify our decision.
If requested by the company, this can also be published in the form of a press release. To ensure that no confidential information enters the public domain, we first consult with the company concerned before releasing any publications.

In the case of a first-time rating, the entire procedure is normally completed within six to eight weeks at the latest. However, the rating process can be substantially shortened – particularly in the event of a planned capital market transaction – if the documents required for the analysis are already available.

EULER HERMES RATING AT A GLANCE