ALLENTOWN, Pa. (November 12, 2014)
- Only Bright Spot is U.K., Where Credit Ratings in Four Bellwether Industries Climbed Significantly
- Company Credit Ratings in Germany and France Remain Flat; Italian Companies Suffer Drop in Ratings Across All Sectors
The U.K. is the only one of Europe’s four largest economies to report an increase in average company credit ratings in four key sectors, according to new data released today by Creditsafe.
Creditsafe, the world’s most-used supplier of company credit reports, assessed 26 million active companies throughout Europe during a 12-month period to report its findings.
The credit ratings of U.K. companies in four bellwether sectors – manufacturing, construction, retail and professional services – increased significantly over those of a year ago. But in Europe’s three other largest economies, company credit ratings were largely flat or down from the same time last year. In Italy, Europe’s fourth largest economy, company credit ratings dropped in all four sectors.
“The European economy remains a concern to investors worldwide,” said Matthew Debbage, president of Creditsafe’s U.S. operations. “Despite the U.K.’s thriving economy, which is validated by a significant jump in company credit ratings in four key industries, much of the rest of Europe is flat or in decline. Company credit ratings in Germany, France and Italy were down or flat in almost every sector.”
Company credit ratings in the U.K. showed significant growth. In both Germany and France, they dropped slightly. In Italy, they suffered a drastic eight-point loss over the year prior.
In France, the one bright industry spot was manufacturing, where company credit ratings in that sector climbed four points.
Company credit ratings measure a company’s ability to repay its debts or likelihood of bankruptcy. All companies are ranked on a scale of 1-100, from weakest to strongest.
The highest-performing sector was the U.K.’s business services industry, which scored 69. The lowest was Italy’s construction sector, which scored 37.
“The turmoil in markets worldwide, along with the increase in global business, underscores the need to be exceptionally well-informed when trading in overseas economies,” Debbage said.
Founded in Norway in 1997, Creditsafe, Inc. (www.creditsafe.com) is the most-used supplier of company credit reports in the world. It maintains the largest single owned and integrated database of business credit information gathered from 129 countries. Since its inception, the company has delivered more than 50 million company credit reports to customers worldwide.
Today, Creditsafe is rapidly expanding its footprint into the U.S. by offering an easy-to-use, high-quality and cost-effective alternative to Dun & Bradstreet and other major credit reporting providers. It has more than 3,000 customers in the U.S. Its U.S. operations are based in Allentown, Pa.
Creditsafe’s subscription-based products include: domestic and international credit reports, trade payment data, credit monitoring, risk analysis, business officers’ credit reports, and business media monitoring.
Buchanan Public Relations for Creditsafe USA