Despite the crisis currently afflicting the global economy, Francom’s creditworthiness is guaranteed to remain high for the next 6 months. This is confirmed by the assessment drawn up by Credit Data Research on behalf of the Vicenza section of Confindustria and Francom S.p.A.. Credit Data Research is a London-based company that assesses the creditworthiness of companies and assigns them ratings from a minimum of E to an excellent A++.
Francom was awarded an A+, confirming its excellent reliability. This rating will remain valid for the period from October 2020 to April 2021, when updated financial statement figures will be reviewed to ascertain a new rating for the next six-month period.
Why does Francom want a Credit Passport?
Francom, the leader in van racking, has been submitting its financial data for Credit Passport assessment for several years now. The aim is to obtain an objective and independent assessment of the company’s ability to carry out its activities while fulfilling its financial obligations on a regular basis.
Who is interested in the Credit Passport?
The Credit Passport contains data of certain interest to a company’s customers and suppliers, as it provides a transparent assessment of:
the risk of insolvency, i.e. the risk that the company will prove unable, even in part, to fulfil its capital payment obligations to creditors;
the probability of default, i.e. the probability of the above actually happening; in Francom’s case this was assessed at 0.1428%, or just 5 hundredths of a percent away from the highest excellence rating of A++;;
the rating itself, i.e. the degree of reliability of the company.
Francom therefore enjoys excellent creditworthiness from banks and suppliers and offers an excellent level of security to all creditors and commercial partners.
How is the Credit Passport calculated?
To define a company’s risk profile and arrive at the above rating, Credit Data Research analyses a series of financial and operational factors. The agency uses internal data like the financial statement, and external data obtained from the Bank of Italy’s Risk Centre and applies the proprietary DefaultMetrics model and Moody’s Analytics’ RiskCalc model. In Francom’s case, all the figures in the financial statement contributed to reducing the risk of default. Of particular importance were our company’s net assets (9,000,278 euros), profit on ordinary activities + depreciation.
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