Industry Ratings Suite
The Industry Ratings Suite, assigned by the Credit Rating Agency of ICAP CRIF, enable users to have at their disposal complete and real-time forecasts of a range of industry-level risks to support business decision making. These risks relate to the following:
- Credit risk dynamics,
- Resilience dynamics,
- Degree of exposure to crisis situations,
- E, S, G and ESG default risks,
- Financial crime risks and
- Environmental crime risks.
The Industry Rating Suite consists of the following components:
1. Credit Risk Score, which assesses the industry average probability of default over a 1-5 year horizon, considering, among its main characteristics, risks indicated by market prices.
2. Resilience Score, which assesses the average sectoral degree of resilience, considering, among its main characteristics, the expected degree of absorption of negative versus positive market disturbances.
3. Crisis Risk Score, which assesses the degree of exposure of the industry to abrupt extreme changes in fundamentals, taking into account, among its main characteristics, projected abrupt shifts over a 1-5 year horizon in expectations regarding, inter alia, credit risk, country risk and key inputs.
4. ESG Risk Score, which assesses the sector average probability of an E, S, G and overall ESG criteria default event, based on relative economic materiality, over a 1-year horizon.
5. Financial Crime Risk Score, which assesses the sectoral average probability of occurrence of financial crime events, over a 1-year horizon.
6. Green Crime Risk Score, which assesses the sectoral average probability of occurrence of environmental crime events over a 1-year horizon.
The Industry Rating Suite is subject to a semi-annual updating. Methodologically, its components combine quantitative forecasts with the views of a team of experienced analysts which are submitted to the Rating Committee.
Based on the NACE Rev.2 classification, the Industry Rating Suite is in principle assigned to the 31 sectors of activity, while the classification can be further broken down according to the user’s needs.
