Banque de France Introduces New Rating Scale
NRS: A More Granular Scale
On January 8, 2022, the Banque de France introduced a new rating scale known as the NRS (Nouvelle échelle de notation). This scale is designed to be more granular and provide a more accurate assessment of the credit risk of non-financial corporations.
Benefits of the New Rating Scale
The NRS offers several benefits, including:
- Improved granularity: The scale provides a more detailed assessment of credit risk, allowing investors to make more informed decisions.
- Enhanced transparency: The NRS provides a clear and consistent framework for rating non-financial corporations, improving market transparency.
- Free of charge: The Banque de France assigns the NRS rating free of charge to companies with a turnover exceeding EUR 750,000.
Mapping to Other Rating Scales
The Banque de France emphasizes that the NRS is not intended to be compared to the rating methodologies of other External Credit Assessment Institutions (ECAIs).
Eligibility and Process
The NRS is available to non-financial corporations in France. Companies interested in obtaining an NRS rating should contact the Banque de France.
Outlook and Future Updates
The Banque de France will continue to monitor and update the NRS as needed to ensure its effectiveness and relevance. The next rating date will be announced in due course.
Conclusion
The Banque de France's NRS is a valuable tool for investors and companies seeking to assess and manage credit risk. Its granularity, transparency, and free availability make it a valuable addition to the financial landscape.
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