Credit Analysis & Shadow Rating

A traditional credit rating is a public statement of opinion. A shadow rating, however, is a powerful strategic tool: a confidential, independent assessment of creditworthiness that mirrors the rigorous methodologies of rating agencies. It provides an objective benchmark for unrated entities and a forward-looking view of credit risk for issuers and investors.

Our Role

Together with our partner EthiFinance, we provide expert, independent credit analysis and shadow rating services, incorporating a systematic evaluation of Environmental, Social, and Governance (ESG) factors. Our joint analysis delivers a holistic and defensible view of an entity's credit profile to inform strategic, financing, and investment decisions.

Shadow Rating Assessment

We conduct a rigorous evaluation of an entity's creditworthiness, aligning with the methodologies of major credit rating agencies. This provides a reliable proxy for an external rating, allowing clients to anticipate public ratings or benchmark unrated debt.

Systematic ESG Integration

We explicitly and systematically include all material ESG factors in our credit analysis, assessing their potential impact on an issuer's financial performance and ability to service its debt, in line with UNPRI principles.

Holistic Credit Risk Analysis

Our analysis goes beyond standardized models to include qualitative factors such as management quality, strategic positioning, and industry dynamics, providing a more nuanced and complete evaluation of credit risk.

Bespoke Industry & Factor Analysis

We develop customized analytical frameworks that incorporate factors specific to the industry and market conditions in which an entity operates, delivering a more tailored and relevant assessment of credit risk.

The Aether Advantage

Traditional credit analysis is often backward-looking and slow to incorporate emerging risks. Our approach provides a more dynamic and forward-looking perspective, delivering the insight clients need for superior strategic decisions. To ensure the highest degree of analytical rigour and compliance, we have formed a strategic partnership with the credit rating agency EthiFinance, integrating their expertise into our own proprietary methodologies.

Forward-Looking ESG Integration

Forward-Looking ESG Integration ESG is not a separate analysis; it is an integral part of modern credit risk assessment. We understand how ESG drivers transmit into financial risks and are adept at assessing the materiality of factors like climate transition, supply chain labour practices, and corporate governance, in line with guidance from bodies such as the European Banking Authority (EBA). Our analysis is enhanced by the extensive knowledge of our partner EthiFinance, providing specialist insight that delivers a more complete and resilient view of long-term creditworthiness.

The Independent Benchmark

For unrated companies or private debt issuers, our joint shadow rating provides a credible, objective benchmark of credit quality. It allows management and boards to understand their credit profile through the lens of an external agency, providing a powerful tool for strategic planning, capital structure optimisation, and negotiations with lenders and investors.

Confidential Consultation

To discuss an independent assessment of your credit profile, please contact us.