Fitch Publishes Business Services Ratings Navigator
The sector risk profile defines and groups companies operating in the sector into a 'natural rating territory' based on Fitch's view of the inherent risk profile of the industry. Each company's overall risk profile generally does not stray too far from this rating range.
After assessing the operating environment, then management and corporate governance, the Navigator examines four sector-specific business profile factors for given rating levels. Sector-specific key factors include market position and scale, diversification, contracts and renewal risk as well as contract execution and expertise. Finally, three financial profile factors, including profitability and cash flows, financial structure and financial flexibility, help capture financial attributes commensurate with particular rating categories.
The report, titled 'Business Services: Ratings Navigator Companion' is available at www.fitchratings.com or by clicking the link below. This report should be read in conjunction with the 'Introducing Rating Navigators for Corporates' report dated 5 November 2014.
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