Financial Institutions Credit Ratings & Scores
Pursuant to its institutional role as a Credit Rating Agency, ICAP CRIF RATINGS issues Credit Ratings which are issued through a rating system based on a publicly accessible methodology, with rating categories according to ICAP CRIF RATINGS’s 10-point scale from AAA to D and may be used for regulatory purposes in accordance with EU law as implemented by the national legislation of EU Member States.
The Credit Rating Agency developed methodologies for the assignment of Credit Ratings to Bank Financial Institutions (BFIs) and Non-Banks Financial Institutions (NBFIs) at European level.
BFIs are defined as deposit-taking credit financial institutions, including holding companies of such institutions, while NBFIs are defined as any non-deposit-taking financial institutions, including e.g., mortgage companies, credit cards, general consumer financing, commercial finance, factoring, leasing, securities brokerage, asset managers, automobile financing and student lending. The methodologies are based on both quantitative and qualitative analysis of historical and current data, to form expectations for a variety of aspects affecting credit risk. These include e.g., financial, business, operational, legal, regulatory, ESG, climate, industry-specific and sovereign factors.
The Credit Rating is captured on a ten-point scale (AAA, AA, A, BBB, BB, B, CCC, CC, C & D). The lower the estimated probability of default and/or bankruptcy over a one-year horizon, the higher the assigned credit rating.
Methodology for the assignment of Credit Ratings to Bank Financial Institutions
Methodology for the assignment of Credit Ratings to Non-Bank Financial Institutions
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