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Press release: We recommend refusing credit facilities to 7,622 companies

1. Oct 2014

Today, on 1 October, credit rating of 7,622 companies has been changed to negative due to lack of recent financial data. 

The change affects the companies whose credit rating was positive so far, but who as of today failed to submit their annual reports for 2013. Krediidiinfo experience demonstrates that submission of such data is often delayed in order to hide weak economic results. It may also mean that the company is likely to cease its operations. 

If a company has a negative credit rating, risks related to providing it with credit facilities are extremely high. Krediidiinfo does not recommend selling products or services to such companies on credit. Negative rating may also result in suppliers using stricter credit conditions, limit bank loan possibilities or leave the company without new customers. 

Most of the companies with new negative credit ratings are involved in wholesale and retail sale (1358), scientific and technological activities (1352) and construction (832). 

Recalculation of credit ratings does not apply to new companies and to those cases, where less than six months have passed since the end of the financial year. 

Credit rating is calculated based on information regarding economic and financial status along with payment discipline. Credit ratings are used by all the major creditors of banking, telecommunications, fuel, trading and many other sectors of business.