The company communicates its SIREN number, the amount and the term of the loan. The analysis is based on financial data from external databases (Scores & Decisions) and the banking companies (FIBEN) file.
The credit team exchanges directly with the company to clearly understand its project and status (activity, market, financial situation, etc) in order to confirm the eligibility of the company.
This rating allows lenders to easily understand the repayment ability of the company and the level of risk of the project to be financed.
Level of profitability, capital structure profile, level of debt and company's ability to repay
Trend of the company's market and its positioning
Governance of the company and its history
The FCCR corresponds to the operating profit net of corporate tax and self-funded investments divided by financial expenses and the total debt service (annual principal and interest payments). The higher the FCCR, the more significant the safety margin.
Example: a 1.5 FCCR means the company has a cushion of 50% against its repayment capacity.
|FCCR < 1||FCCR = 1||FCCR > 1|
Insufficient profitability to cover debt repayment charges.
Profitability just sufficient to cover debt repayment charges.
Profitability sufficient to cover debt repayment charges with a safety cushion.
Presentation to the Credit Committee will be considered depending on the history and management of the company and contextual elements.*
Presentation to the Credit Committee will be considered taking into account contextual elements.**
Presentation to the Credit Committee
*Example: The operational organisation of a group (cash flows towards the parent company as part of cash pooling, centralised billing system with a production company that manufactures on behalf of the group and billing done by a distribution company).
**Example: The financial organisation of a group (debts recorded in a holding company and not at the level of our borrower) or intrinsic level of profitability of the group.
The higher the rating, the lower the loan interest rate