The Bank of France raises the threshold for corporate credit ratings for the first time in 40 years

Paris, December 13 / WAM / The Central Bank of France announced a major amendment to 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 750,000 euros to 1.25 million euros, as of the beginning of next January.

This came during a press conference held by Emily Kima, Director of the Corporate Department, during 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 is characterized by complete confidentiality and is considered a free service to support the economy.

The Bank of France’s ratings, unlike agencies such as S&P and Moody’s, are free and rely on comprehensive data taken 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 that reflects creditworthiness.

It is expected that about 7% of companies will exit the credit rating system of the Bank of France, with the threshold raised, especially those with a turnover between 750,000 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 terms of commercial insurance and payment.

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