Scope Ratings is proposing an update of its Automotive and Commercial Vehicle Manufacturers Rating Methodology and is calling for comments from market participants until 10 March 2023.

The proposed methodology can be downloaded here or on www.scoperatings.com.

Key proposed changes

Besides minor editorial changes, the proposed update includes the following adjustments:

• 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;

• Further clarification on the treatment of captive finance operations. This includes a refined definition of a captives, guidelines for assessing the potential impact on the parent’s credit quality, for sizing potential capital needs and for assigning individual issuer/debt instrument ratings to legally separated captives;

• Recalibration and clarifications on some rating assumptions;

• Further clarity on industry-specific ESG factors.

Call for comments

Scope invites issuers, investors and other interested parties to comment on the methodology by 10 March 2023 as part of the agency’s ongoing commitment to transparency and an open dialogue with market participants.

Please send your comments to consultation@scoperatings.com.  

Scope will review and publish the content of written responses in accordance with regulatory requirements unless the respondent has explicitly requested confidentiality and will publish the final version of the methodology thereafter.