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Issuers

Financial Institutions

Scope is the first and so far the only Europe-headquartered CRA embarking upon global bank credit ratings and analysis. We do it with a highly experienced London-based team of bank analysts with both credit and equity background. Initial focus is given on European banks.

Market participants expect rating agencies like Scope to provide accurate ratings and quality, forward-looking credit research. We aim to contributing to a greater diversity of opinions among rating agencies in today’s capital markets.

Our value proposal

For larger banks with a good degree of public financial transparency Scope is confident that it is able to analyze and rate based on public information and data, although it values highly any degree of cooperation from issuers. Clearly, we want to minimize management time on the issuer side and do our homework first.

Scope aims to underpin forward-looking ratings with forward-looking analysis. To that effect it will provide estimates of future trends in balance sheets and earnings based on public information.

Facilitate market access

Scope is committed to accurate ratings by taking a fresh post-crisis perspective in bank analysis without any legacy issues (no outdated rating methodologies)

Our ratings are designed to contribute to the efficiency and transparency of European capital markets. For issuers, they facilitate access to capital markets and broaden the investor base. For institutional investors they provide decision-making support whereas investment banks and regulatory authorities use our ratings as well to measure credit risk. Scope applies the internationally recognized rating scale ranging from AAA to D.

Investor outreach

Scope is committed to delivering rating analyses to our institutional clients on a timely basis. We therefore engage in a transparent dialogue with market participants across Europe, either in face-to-face meetings or at events. We offer tailor-made investor roundtables and seminars to inform about current credit, market and regulatory trends.

Methodology

Market feedback received focuses on the need for clearer, more forward-looking and transparent ratings to reflect post-crisis reality. Therefore, Scope Ratings addresses the bank-sovereign links, re-regulation (incl. bail-in replacing bail-out) and the growing importance of market sentiments on banks.

The methodology includes details on rating subordinated debt and capital instruments. A separate methodology on rating covered bonds will be published in the near future. Scope has also published a separate methodology focusing in detail on forecasting bank financials. In order to gain credibility with investors, forward-looking ratings must be underpinned by forward-looking financial and business analysis.