The proposed updated methodology can be downloaded here.

The proposed update provides increased transparency and a detailed presentation of Scope’s analytical approach for assigning credit ratings to retail corporates. The methodology continues to be based on a modular rating approach for issuer ratings comprising an assessment of key rating factors that define a rated entity’s business and financial risk profiles, which is supplemented by supplementary rating drivers.

Summary of the proposed key changes

The proposed methodology contains the following material change:

• Introduction of an additional credit metric as a part of the FRP assessment to enhance comparability for issuers that predominantly rely on leased properties for distribution

As well as the following non-material changes:

• Update of the country retail strength matrix based on the most recent data
   
• Adding of new paragraph on the benefit of diversification for discretionary retailers
   
• Adding of a new paragraph (5.2.2) to separately clarify our treatment of cash for company that are subject to high seasonality

Call for comments

Scope invites issuers, investors and other interested parties to comment on the methodology by 26 May 2025, as part of the agency’s ongoing commitment to transparency and open dialogue with market participants.

Please send your comments to consultation@scoperatings.com.

Scope will review and publish the content of any written response in accordance with regulatory requirements unless the respondent has specifically requested confidentiality.