Download the final methodology here.

The updated methodology enhances transparency and provides more detail on Scope’s analytical approach for determining the credit ratings of retail and wholesale companies. The methodology continues to use Scope’s modular rating approach for corporate issuers, which comprises the assessment of key rating factors defining a rated entity’s business risk and financial risk profiles complemented by the assessment of supplementary rating drivers.

Key changes in summary

The material change to the methodology is:

• A new credit metric forming part of the financial risk profile assessment that enhances comparability for issuers that mainly rely on leased properties for distribution

Non-material changes include:

• An updated country retail strength matrix based on the most recent data
   
• A new paragraph on the benefits of diversification for discretionary retailers
   
• A new paragraph (5.2.2) specifically detailing Scope’s treatment of cash for companies whose operations are subject to high seasonality

Call for comments ended

Scope invited market participants to comment on the methodology until 26 May 2025. Scope did not receive comments from market participants during this period. The methodology is now final.