For Belgian mid and large caps who need to access the capital markets to raise funds and professional lenders who want to estimate the credit worthiness of companies they lend money to.
PrivateLending, the professional B to B platform connecting borrowers and sophisticated lenders offers annually an overview of Belgian company’s credit worthiness.
Midcaps need professional support to assess their credit quality and raise funds in the capital markets. To that end, ratings are important because they reflect the ability of a company, to reimburse debtors and it also quantifies the probability of default on the repayment of its debt.
The cost and ability of a firm to access funding depends largely on its rating. A rating of BBB and above is considered « investment grade ». Historically, the probability of default of those «investment grade» firms over 3 years has been below 1%. Hence, they can have a better access to financing and at better conditions.
Every year after the National bank of Belgium’s final date for the submission of annual accounts (in 2020, October 31st), PrivateLending computes the rating of Belgian firms with annual turn-over above 9 million €.
PrivateLending’s ratings comprise 16 categories ranging from AAA to B-.
The universe comprised 7.200 companies broken down into 22 sectors. The largest sector is retail with 31% of firms.
65% of them have a rating of investment grade (BBB) or above.
40 firms could achieve the AAA rating, the majority are in the Consumer products and Healthcare sectors.
The overall ratings for the Belgian universe did not differ dramatically between 2019 and 2018, however, should we do it today, the landscape would probably be very different as some firm’s financial situation has been hit hard by the pandemic.
PrivateLending offers firms and real estate experts the ability to be in contact with professional lenders who seek to lend to Belgian corporates and real estate specialists.
Should you wish to estimate your rating and your ability to raise funds from our network of sophisticated investors, please click on the link.