Scope Ratings GmbH (Scope) has today published its updated rating methodology for pharmaceutical companies. The update provides a detailed presentation of Scope’s analytical approach for assigning credit ratings to pharmaceutical companies. The application of this methodology will not trigger any rating changes.

The updated methodology can be downloaded here.

Besides editorial changes, with this update Scope

• aligned the industry risk matrix with the General Corporate Rating Methodology;
   
• provided extended guidance on the assessment of business risk profile, including the ‘CCC and below’ category for operating profitability;
   
• regrouped and introduced business risk profile assessment tables for the generics segment. This involved repositioning the formerly used diversification table to market shares and introducing a new diversification table;
   
• assigned an implicit, qualitative factor to the formerly and explicitly defined ‘other’ rating driver element in the business risk profile;
   
• aligned the financial guidance table with the General Corporate Rating Methodology and provided values for a AAA assessment on all credit metrics.

Scope invited market participants to comment on the methodology by 10 February 2024. Scope has not received comments from market participants.