Coface Debtor Risk Assessment divided in 10 scales and 3 risk categories

RISKCATEGORY: 2
RISK CATEGORY: 1
Medium, Acceptable Risk for Non
Low Risk for Investment Grade Companies
Investment Grade Companies

10 Very high financial stability 5 Medium Risk

Large and extremely stable companies. Solidity is undoubted. Risk of Financial performance and above all stability are clearly below
default is close to zero. average. Risk of default must be consiered but remains accept-
9 High financial stability able in most cases for short term credits.
Large to medium sized companies or groups of companies demon- 4 Increased Risk
strating a high level of financial stability. Exposures could only be jeo- There are some problems. If they are not resolved, the ability to
pardized by extreme and unforeseen external factors. Risk of default is fulfil obligations could clearly be affected. Risk of default is signi-
very low. ficant but may be acceptable for limited short therm credits.
8 Good financial stability
Financials are basically sound. In addition to extreme factors, expo-
sures are sensitive to the business environment. Nevertheless, risk of
default is low. RISKCATEGORY: 3
7 Stable, slightly above average financial stability High Risk for Non Investment Grade
Financial performance and stability for large companies/group of com- Companies
panies is slightly above average for medium size businesses it is con-
sidered normal. Risk of default is slightly above average.
3 High Risk
6 Average financial stability Financial situation and reliability are questionable. Risk of default
Financial stability is average. The sensitivity to external adverse is high.
factors should not be neglected. Risk of default is average.
2 Very High Risk
Financial situation is very poor and close to critical. Risk of default
Non Investment Non Investment Grade is very high.
Investment Grade Companies Grade Companies Companies 1 Extremly High Risk
Demonstrates clear signs of financial distress. Any commitment is
Low Risk Medium High Default
Risk
High Risk linked with a high probability of default. Risk of default is extremly
10 0
high.
6 79 88 7 6 5 4 3 2 1
Risk Category: 1 Risk Category: 2 Risk Category: 3 0 Default