Scope of credit analysis by OeKB
In the credit assessment of a balancing group representative (BGR) or a market participation applicant (a company that has applied for market participation but not yet been licenced by APCS), OeKB evaluates the organisation’s situation in its entirety: its business, legal, financial and personnel position.
The credit analysis is based especially on the metrics in the list below, as well as on the prior two fiscal years’ audited annual financial statements including the associated notes and management reports.
For the purpose of ongoing credit surveillance, the BGRs must supply the latest annual financial statements complete with notes and management reports, no later than six months after the end of the fiscal year. Where this requirement is not met despite a written reminder, the BGR is automatically assigned the poorest credit rating.
After the credit analysis, a credit rating is assigned (a risk category ranging from 1 to 5, with 5 being poorest). If no appropriate data is available, a rating of 5 is automatically assigned.
On the basis of the credit assessment, a collateral reduction amount is set for the individual company and deducted from the variable collateral requirement.
Specific financial data relevant to the credit rating
- Solvency ratio
- Return on investment
- Cash flow for the purposes of the Corporate Reorganisation Act (CRA) as a percentage of sales
- Notional debt repayment period under the CRA