French Central
The Central Bank of France revealed a major amendment in the classification of companies for the first time in 40 years, as the threshold for the turnover required to obtain a credit rating was raised from 750 thousand euros to 1.25 million euros as of the beginning of next January.
This came during a press conference held by Emily Kima, Department Director CompaniesDuring which she explained that the classification measures the company’s ability to fulfill its financial obligations within a period ranging between one and three years, and it is characterized by complete confidentiality and is considered a free service to support the economy.
They are classifications Bank of FranceUnlike agencies like S&P and Moody’s, it is free and relies on comprehensive data drawn from multiple sources, including official records, tax documents, and corporate accounts.
This data is collected in a huge database known as “Fiben”, which is used to determine the rating, which consists of a letter indicating the size of the business and a number reflecting the creditworthiness.
It is expected that about 7 percent of companies will exit the system Credit rating For the Bank of France, raising the threshold, especially those with a turnover between 750 thousand and 1.25 million euros, while this change includes many small and medium-sized companies, which may face impacts on their relationships with their suppliers, since the credit rating directly affects the conditions Commercial insurance and payment.
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