Scope Ratings today updates its European Automotive Suppliers Rating Methodology. Scope’s existing issuer and debt instrument ratings of European automotive suppliers are not expected to be affected.

The update introduces the following changes:

• Extended guidance on the assessment of business risk profiles, including the ‘A’ and ‘AA and above’ categories as well as ‘B‘ and ‘CCC and below’ categories.
   
• Fine-tuning of some key rating assumptions ranges;
   
• Clarification regarding the composition of Scope-adjusted EBITDA (capitalised R&D);
   
• Further clarity on industry-specific ESG factors;
   
• Minor editorial changes

Scope did not receive comments from market participants during the request-for-comments period, which expired on 19 January  2023.

 Download the updated methodology here or on www.scoperatings.com.