ESMA (European Securities and Markets Authority), who enhance the protection of investors and reinforce stable and well-functioning financial markets in the European Union, have announced the approval of modeFinance’s application for registration under Article 16 of the European CRA Regulation.
modeFinance are experts in financial analysis and scoring. They provide the More Credit Risk metrics for our Financial Strength section. These scores are calculated by modelling a company's financials using statistical and financial analysis theories. They include a class (from AAA to D, 10 classes), a recommended credit limit and a probability of default.
modeFinance can be found in our databases such as Orbis and Amadeus, and also within our Catalysts (Credit Catalyst and Procurement Catalyst) to help you asses the financial strength of companies in our specialist platforms.
The registration was approved by ESMA following an intensive period of examination that looked into transparency, governance and conflicts of interest avoidance. In order to comply with the requirements, modeFinance adopted and implemented strict and rigorous internal policies and procedures alongside methodologies that are rigorous, systematic, continuative and subject to validation based on historical experience.
Our financial strength partners are all experts in helping people assess companies. Each has a slightly different approach and methodology - giving you a range of views to use in your own analysis. For more information, see our financial strength metrics page.