The updated methodology can be downloaded here.

Scope Ratings GmbH (Scope) has today published its updated Pharmaceutical Companies’ Rating Methodology. The update provides increased transparency and a detailed presentation of Scope’s analytical approach for assigning credit ratings to pharmaceutical companies. The methodology continues to be based on a modular rating approach for issuer ratings comprising an assessment of key rating factors that define a rated entity’s business and financial risk profiles, which is supplemented by supplementary rating drivers.

This updated version introduces the following changes:

• An alignment of the assessment for the AAA and AA categories for cash flow cover with the thresholds from the Scope’s General Corporate Rating Methodology;
   
• The removal of “Other Factors” for the assessment of the business risk profile for Generics;
   
• The clarification of the industry risk profile assessment for Generics;
   
• Editorial changes.

Scope invited market participants to comment on the proposed methodology by 4 May 2024. Scope has not received comments from market participants.