|
|
 |
|
Viewing report
|
|
|
|
A Closer Look At Industrials Ratings Methodology: Competitive Position And Profitability Nov 06
Standard & Poors, Nov 2006
Abstract
Competitive positioning and profitability are two critical components of Standard & Poor's Ratings Services analysis of a company's business risk profile. While the evaluation of country and industry risks--the first stage of business risk analysis--is often perceived to be largely based on qualitative aspects, analysis of a company's competitive position and profitability--respectively the second and third stages--may, at first glance, seem to derive from hard numbers and historical evidence, and therefore appear less subject to differences in interpretation. Market shares and profitability ratios, for instance, provide strong evidence of a company's relative positioning. Credit analysis must, however, extend well beyond these factors. In fact, our views on the sustainability of both business positions and profitability measures in an adverse market...
Companies mentioned in this report are: General Electric Co.,Panasonic Corp.,Siemens AG,Fiat SpA,Nokia Corp.,Koninklijke Philips Electronics N.V.,SSAB AB,Volkswagen AG,ArcelorMittal,Vodafone Group PLC ,ArcelorMittal Dofasco Inc.,Accenture PLC,Befimmo S.C.A.,Arcelor S.A.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
|
|
|
|
