Press release: We recommend refusing credit facilities to 8,752 companies
Since 1 October credit rating of 8,752 companies has been changed to negative due to lack of recent annual reports. In comparison with the past year this figure has increased by more than one thousand companies.
The change affects the companies whose credit rating was positive so far, but who failed to submit their annual reports for 2014. 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 (1690), applied, scientific and technological activities (1588) and construction (877).
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.
Krediidiinfo AS specializes in international credit information gathering, processing and intermediation, focusing on decreasing financial risks of Estonian companies. Krediidiinfo is one of Experian group companies. In 2015 Forbes magazine named Experian one of the most innovative companies in the world.
Alar Jäger, assistant director of Krediidiinfo AS
Phone: 665 9611