Scope Ratings has today published its updated Chemical Corporates Rating Methodology, which clarifies and refines its analytical approach while keeping the core principles unchanged.

Scope invited market participants to comment on the methodology. No comments were received and the methodology has been published as proposed.

Download the updated methodology here.

Methodology highlights

The update of the methodology includes the following adjustments:

• Expansion of rating scale in the business risk profile by ‘AA and above’ and ‘CCC and below’ category.
   
• EBITDA margin in the operating profitability assessment is now conducted on the last three years paired with Scope’s forecast for the current year. Formerly, the assessment was performed on using a through the cycle approach.
   
• Minor editorial changes

Rating impact

Scope does not expect the updated methodology to affect existing issuer or debt ratings for non-financial corporates covered by Scope.