Scope Ratings today updates its Automotive and Commercial Vehicle Manufacturers Rating Methodology. Scope’s existing issuer and debt instrument ratings of Automotive and Commercial Vehicle Manufacturers are not impacted by the update.

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;
   
• Further clarification on the treatment of  captive finance operations, including a refined definition of captive finance operations; the introduction of guidelines for assessing the potential impact of captive finance operations on a parent company’s credit quality, and how to assess potential capital needs of the parent to support the captives operations;
   
• Recalibration and clarifications of rating assumptions;
   
• Clarification of industry-specific ESG factors; and
   
• Minor editorial changes.

Scope did not receive comments from market participants during the request-for-comments period, which expired on 10 March 2023. The methodology is now final.

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