Press release: We recommend refusing credit facilities to 11 645 companies
Since 1 October credit rating of 11,645 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 three thousand companies.
The change affects the companies whose credit rating was positive so far, but who failed to submit their annual reports for 2015. According to Alar Jäger, the assistant director of Krediidiinfo AS, this demonstrates that the company is likely to cease its operations and that submission of the data is likely delayed in order to hide weak economic results. Krediidiinfo has reminded all the companies about submission of reports and warned about potential lowering of their credit ratings.
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 applied, scientific and technological activities (2115), in wholesale and retail sale (2055) and real estate related business (1095)
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. Since 2016 Krediidiinfo is a subsidiary of Creditinfo Group – an international company that offers credit information and risk management services.
Alar Jäger, assistant director of Krediidiinfo AS
Phone: 665 9611