With an A + long-term and A-1 short term, the Nord – Pas-de-Calais gets a “ good score internationally ,” say Jean-Baptiste Legrand and Christophe Doré, public sector credit analyst at Standard and Poor’s. But “ this rating is lower than in other French regions .” This is the fifth best notch on a scale which has 20. The other ten regions evaluated by the agency (1) get higher marks from one to two notches.
The area is one of the first in France to funded from financial markets. It is evaluated by an agency since 1997. His first bonds date back to 2008. “ To be noted broadens the spectrum of investors willing to lend funds to the community. Moreover, we have a long-term financing strategy based on diversification , “says Rudy Elegeest, vice president of finance for the Region
In 1997, the North -. No -of-Calais had obtained its current rating. Its level was raised in 2003 before being returned to its original level in 2013. The rating agency believes that “ governance and financial management of the region are satisfactory ” and “ the financial risks associated with off-balance sheet commitments are moderated . ” But “ his notes remain constrained by expected fiscal performance as weak, due to the anticipated increase in financing needs by 2017 .” Analysts point out: “ The North’s investment policy – Pas-de-Calais is quite ambitious. “
The prospects of regional rating remains stable for 18-24 months. “ We do not envisage questioning. But we must take into account the results of the regional elections in December. If there is a strong adjustment in early mandate, then we may have to review our notes. As for the merger with Picardy, it will most likely have a neutral impact on the notes. “
What’s the point?
Both analysts Standard and Poor’s in charge of grading the region explain what this means and what for.
– What is a rating agency such as Standard and Poor’s
“It is used to evaluate, give an opinion on the ability of a? entity to repay its debt in a timely manner. “
– Who asks the rating of a public body
” This is the community itself?. In the case of the Nord – Pas-de-Calais, the regional council, which organized calls for tenders. This is one of the first regions to have been noted earlier because it borrowed on the financial markets. “
– How do you
” We are studying, in pairs, individual credit profile of the entity. A bit like the fact a bank before granting a mortgage. We use the same criteria throughout the world. We analyze eg fiscal performance of the entity over several years, its ability to modulate the level of revenue … The case is presented to a committee analysts from different countries. They adopt or not the recommendations of the analysts handling the case. “
– Why a community note
” The note provides lenders an indication of a scale that has twenty notches triple A for the better? rated D for default. This note allows the lender to arbitrate – is that it grants the loan or not? – And to set its price level based on the financial profile. The higher the risk is great for him to have difficulty being repaid, plus the cost of borrowing is high. “
1. Aquitaine, Auvergne, Centre, Champagne-Ardenne, Franche-Comté Ile-de-France, Languedoc-Roussillon, Limousin, Loire, Rhone-Alpes.
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