Insurance and financial institutions

Financial institutions

The financial institutions team offers opinions on the credit profile of banks, banking groups and cooperative groups. The rating measures their ability to meet their obligations in time and form.

Our analytical approach

EthiFinance's ratings are based on a flexible methodology shaped around the dynamic nature of the industry, as well as its regulatory guidance, whose objective over the years has been to strengthen the bank's internal soundness by improving its liquidity profile, regulatory capital ratios and reducing its risk profile.

The methodology is based on the determination of the internal strength of the institution, which could be adjusted for any systemic (State support to distressed financial institutions) or internal support from any related companies (domestic and international subsidiaries).

To ensure the stability and predictability of credit ratings over time, EthiFinance's methodological approach is based on the analysis of historical data and the assessment of the institutions' future trends, without prejudice to possible revisions that may be carried out if EthiFinance Ratings observes any changes that may affects the credit standing of the institution.

Our assessment of key factors

EthiFinance Ratings utilizes three categories to analyze the internal strength of the institution, which include a series of quantitative and qualitative factors:

The categories are not analyzed as isolated compartments and it is important to assess how these interact to determine the solvency of each of the entities analyzed.

The combination of these factors provides a rating that could be adjusted based on any systemic or internal support, resulting in the final credit rating.

Our credit ratings & research

The financial institutions team provides opinions on the credit profile of all European banks and other institutions, also covering public financial institutions, at a national and supranational level.

EthiFinance’s financial institutions team also actively conducts research on the European banking sector, on topics such as EU-wide stress testing, the climate risk stress test, among others.

Insurance

EthiFinance Ratings are stable opinions over time on the credit profile of insurance and reinsurance companies. The rating measures their ability to meet their obligations in time and form.

Our analytical approach

The analytical approach followed by EthiFinance Ratings covers insurance and reinsurance companies operating both nationally and internationally, including the life and non-life segments.

The methodology is based on the determination of the company’s stand-alone credit profile, which could be adjusted for any external support (systemic or shareholder support) that the company may present.

To ensure the stability and predictability of credit ratings over time, EthiFinance's considers historical data and future trends on a series of qualitative and quantitative factors, without prejudice to possible revisions that may be carried out if EthiFinance Ratings observes any changes that may affect the credit standing of the company.

Our assessment of key factors

EthiFinance Ratings utilizes three categories to analyze the stand-alone credit profile of the company, which include a series of quantitative and qualitative factors:

The categories are not analyzed as isolated compartments and it is important to assess how these interact to determine the solvency of each of the entities analyzed.

The combination of these factors provides a rating that could be adjusted based on any external support, resulting in the final credit rating.

Our credit ratings

EthiFinance Ratings provide opinions on the credit profile of insurance and reinsurance companies based in Europe.

Asset Managers

Asset manager ratings are opinions on the credit profile of companies that derive most of their revenues from management and performance fees for managing funds and other wealth instruments on behalf of retail or institutional investors. The rating measures their ability to meet their obligations in time and form.

Our analytical approach

The analytical approach used by EthiFinance Ratings to rate asset managers operating nationally and internationally considers both quantitative factors and qualitative aspects, including subjective factors and nuances, and should therefore be understood in a flexible manner due to the dynamic nature of the industry targeted.

The methodology is based on the determination of the stand-alone credit profile of the company, which could be adjusted for any external support that may be available.

EthiFinance Ratings are stable opinions over time on the credit profile of the issuer, and to ensure the stability and predictability of credit ratings over time, EthiFinance Ratings considers historical data and evaluations of the company's future trends, without prejudice to possible revisions that may be carried out if EthiFinance Ratings observes any changes that may affects the credit standing of the company.

Our assessment of key factors

EthiFinance Ratings utilizes three categories to analyze the stand-alone credit profile of the company, which include a series of quantitative and qualitative factors:

The categories are not analyzed as isolated compartments and it is important to assess how these interact to determine the solvency of each of the entities analyzed.

The combination of these factors provides a rating that could be adjusted based on any external support, resulting in the final credit rating.

Our credit ratings

The EthiFinance Ratings team specializes in asset managers based in Europe including multilateral players such as the European Investment Fund.