Credo line

Information and Rating Agency
Credo Line^[1]

Type	Limited liability company
Industry	Financial services
Founded	2008
Founder(s)	Bogdanenko Katerina
Headquarters	31 Kikvidze str. Kiev, Ukraine
Area served	CIS and Eastern-European importing companies
Products	Status Credit Rating Report Status Credit Report Status Credit Report of a Bank Status country report Status business trend report Status monitoring report Status market report Others information-analytical reports
Website	http://www.credo-line.com

^[2][3]

History

Information and Rating Agency Credo Line was established with support of foreign export credit agencies and Ukrainian partners in June 2008 with the view to achieving maximum transparency on the information market of CIS countries and qualitative improvement of rendered services. The described support is explained by utmost necessity of establishment of an objective, independent and specialized rating agency, professionally able to credit assess risks of importing enterprises located in Ukraine, as well as throughout territory of the CIS region. Now and then it’s a privately-owned company with 100% Ukrainian capital, run since the foundation date by the general Director Ms. Katerina Bogdanenko .

The Agency’s Goal is to systematize and discipline the beneficial multilateral foreign economic relations between foreign partners and CIS partners on all of cooperation stages. Different mentality, various approaches to business conduct, different legislative base, accounting standards should not be a barrier while any international transaction between mentioned parties, and with its services’ complex Credo Line is putting every effort to facilitate such multicultural business collaboration.

Services

The main Agency activity line is credit rating assignment, which can be short-term or long-term, depending on the strategy and goals the rated Company/Group of Companies pursue/s. Creditworthiness investigations with subsequent credit opinion definition may be initiated by the rated company or by the interested counteragent (potential partner/existent business partner/financial institution which acts as a mediator between the rated company and other interested party etc.) So, Credo Line is elaborating different kinds of creditworthiness’ investigations, such as:

• Status Credit Rating Report
• Status Credit Report
• Status Credit Report of a Bank

Apart from credit rating products, the Agency is rendering its clients different analytical products, always different by their nature and set goals. Basing on the client’s requirements, needs, deadlines etc. the Agency prepares such reports:

• Status country report
• Status business trend report
• Status monitoring report
• Status market report
• Others information-analytical reports

Ratings & Rating scale

In the process of credit rating assignment the Agency uses its own complex methodology. Agency’s rating methodology is based on a special balanced system of indexes, which includes an influence of country risk and is recognized by leading export credit agencies and other financial institutions. The completeness of indexes list used in the process of evaluation of a company's financial position and performance (absolute indexes, financial stability ratios, solvency ratios, profitability ratios, efficiency ratios, insolvency ratios) and special procedure of reliability audit and correctness of forming basic data allow to evaluate financial position and performance of a rated company in the most objective way. Moreover, the given methodology is particularly adjustable within the trade financing processes and enables to accurately determine the maximum value of rating and maximum amount of credit limit. Scale of credit rating used by the Agency analysts was elaborated as well by the Agency itself for the purpose of estimation of creditworthiness, the level of financial stability, aptitude towards country risk, as well as nonpayment risk of a rated company. Like others world-wide credit rating agencies (the so-called ‘Big three credit rating agencies’ - Standard & Poor's, Moody's Investor Service and Fitch Ratings), Credo Line uses the same internationally-recognized letter designations such as A, B, C and D.

Rating	Description
crAAA	Excellent creditworthiness and financial stability. The company is affected by country risk weakly. Risk of default or delayed payment is exceptionally low.
crAA	Excellent creditworthiness and financial stability. The company is affected by country risk. Risk of default or delayed payment is very low.
crA	Excellent creditworthiness and financial stability. The company is affected by country risk strongly. Risk of default or delayed payment is low.
crBBB	High creditworthiness and financial stability. The company is affected by country risk weakly. Risk of default or delayed payment is low.
crBB	High creditworthiness and financial stability. The company is affected by country risk. Risk of default or delayed payment is moderate.
crB	High creditworthiness and financial stability The company is affected by country risk strongly. Risk of default or delayed payment is below average.
crCCC	Average creditworthiness and financial stability. The company is affected by country risk weakly. Risk of default or delayed payment is average.
crCC	Average creditworthiness and financial stability. The company is affected by country risk. Risk of default or delayed payment is above average.
crC	Average creditworthiness and financial stability. The company is affected by country risk strongly. Risk of default or delayed payment is high.
crDDD	Low creditworthiness and financial stability. The company is affected by country risk weakly. Probability of bankruptcy.
crDD	Low creditworthiness and financial stability. The company is affected by country risk. Probability of bankruptcy is high.
crD	Low creditworthiness and financial stability. The company is affected by country risk strongly. Bankruptcy is expected.
NoR1	No credit rating is given due to lack of data for analysis.
NoR2	No credit rating is given due to the company insufficient period of existence.
NoR3	No credit rating is given due to the fact the company is in process of bankruptcy or had ceased its activities.
NoR4	Withdrawal of rating by Agency.

For every literal rating meaning corresponds definition, which disclose the reliability level, risk character, as well as the forecast of further business development. For instance: crBB – High creditworthiness and financial stability. The company is affected by country risk. Risk of default or delayed payment is moderate. Rating categories from “cr AAA” to “crDD” may be modified with plus or minus sign. For example: there are three rating levels "crAА+", "crAА" и "crAА-" in the rating category “crAA”. Rating “crAА+" is just over “crAА “. Moreover, the Agency has developed and implemented four additional categories (NOR1, NOR2, NOR3, NOR4), which reflect the reasons of rating assignment impossibility for target company, among which there are lack of necessary information about target company, limited duration of company’s existence, etc.

Partners

Main strategic partners of the Agency are foreign export credit agencies (ECAs), exporting companies, international and local banks, factoring companies, collecting agencies and others international financial institutions. Within such partnership Credo Line seeks to contribute to promotion of better trade relations between Ukraine and international business community.

See also

• Export credit agency
• Trade credit insurance
• World-wide credit rating agencies

References

1. ^ Credo Line
2. ^ Food NewsWeek (2010). "Financial stability of PBK Slavutych OAO". Food NewsWeek Website. Food NewsWeek Ukraine: Financial stability of PBK Slavutych OAO confirmed by Information and Rating Agency Credo Line. http://www.foodnewsweek.ru/print.php?PN=doct.php&dout=text&dsubj=33&dtype=4&nid=48358. Retrieved 2010-12-10. 
3. ^ "Status country reports on Ukraine". Credo Line. 2008 - 2011 Nowadays, Credo Line is the only Rating Agency in Ukraine which assigns short-term and long-term credit ratings to Ukrainian, CIS and Eastern-European importing companies in the course of their foreign economic activity and trade financing, in particular. Within its social awareness’ policy, Credo Line issues monthly status country reports on Ukraine. Such reports are free of charge and sent to the Agency’s partners by the means of a monthly general mailing. The reports are also available for download at the corporate website of the Agency.. http://credo-line.com/index_eng.html. 

External links

• Credo Line website