Euler Hermes Rating GmbH, the registered credit rating agency (CRA), today publishes the Swiss TRIBRating methodology, a rating approach specifically designed for SMEs and MidCaps.
TRIBRating is a service developed through the Euler Hermes collaboration with Moody’s Investors Service, formed in late 2016. Launched in 2017 and already operational in Germany, France, Italy and Spain. TRIBRating is now being introduced in Switzerland as the fifth country of its wider European rollout. The TRIBRating service aims to enable small and mid-sized businesses with revenues between €10m and €500m to gain a transparent and internationally comparable credit rating using the full spectrum of the well-known ‘AAA’ to ‘D’ global scale.
“Using a detailed, tailored and transparent methodology and SME-specific modelling, TRIBRating offers a robust assessment of creditworthiness. This independent and globally comparable credit rating could enable small- to medium-sized businesses in Switzerland to attract a wider range of funding sources.” said François Bourgeois, CEO of Euler Hermes Rating. With the Swiss TRIBRating methodology, the tools for a greater transparency of European SME and MidCap credit risk that had previously been available in Germany, France, Italy and Spain will now also extend to Switzerland. “Smaller companies seeking to grow domestically or through export can now differentiate their credit risk levels from those of competitors in a way that has previously been typically restricted to larger businesses.”
The TRIBRating methodology was developed in collaboration with Moody’s Investors Service, a leading global rating agency with extensive experience in developing rating methodologies across a range of sectors. Coupled with Euler Hermes’ extensive knowledge of SME credit risk, TRIBRating identifies, analyses and monitors the specific credit characteristics of SMEs and MidCaps.
“TRIBRating is an important evolution in providing market participants with greater clarity regarding the components of SME and MidCap credit risk, providing global consistency and transparency,” said Jens Schmidt-Bürgel, Managing Director at Moody’s Investors Service. “It is a solution market participants have long been looking for, and Moody’s is pleased to collaborate with Euler Hermes on this.”