Scope of analysis by OeKB
In the credit assessment of exchange members or market participation applicants, 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 mentioned in the list below, as well as on the last two fiscal years’ annual financial statements (audited if available)
including the notes and management report.
For the purpose of ongoing credit surveillance, trading participants must deliver, annually, their latest annual financial statements, including the notes and the associated management report, no later than six months after the end of the fiscal year. Where this requirement is not met despite a written reminder, the trading participant 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 given.
On the basis of the credit assessment, a collateral discount amount is set for the individual company The discount is applied if the credit rating is good, and depending on the exchange member’s regulatory capital (its "own funds", in EU parlance).
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
- National debt repayment period under the CRA