Nordic Credit Rating (NCR) has published a supplementary request for comment on its proposed Corporate Rating Methodology. An initial request for comment was published in October 2025. NCR has subsequently revised the proposal following further analysis, validation and internal review.
Summary of material revisions
The principal changes since the initial request for comment are:
- Sector-specific criteria: introducing specific criteria for regulated utilities.
- Issue ratings: simplifying notching principles for rating individual debt instruments.
- Hybrid securities: introducing formal criteria for assessing the equity content of hybrid securities.
- Business risk assessment: introducing flexibility in the weighting of business risk subfactors to better reflect industry and issuer characteristics.
- Ratio analysis: revising selected net debt-to-EBITDA ranges in the standard corporate ratio framework and introducing a dedicated ratio framework for regulated utilities.
The core methodology architecture and indicative credit assessment matrix remain unchanged from the original consultation proposal. The proposed changes would require corresponding adjustments to our Investment Holding Company Rating Methodology, where applicable.
Request for comment
NCR invites issuers, investors and other interested parties to comment on any aspect of the revised proposal. While the supplementary request for comment focuses on the material changes made since the initial consultation, comments are welcome on any aspect of the proposed methodology.
NCR would particularly welcome feedback on the following questions:
- Do the proposed regulated utility criteria appropriately capture the credit characteristics of regulated utility companies and provide appropriate differentiation relative to other corporate sectors?
- Does the revised issue-rating framework appropriately capture differences in recovery risk and expected loss severity across debt instruments?
- Do the proposed hybrid-security criteria appropriately assess the equity content of hybrid instruments through consideration of subordination, permanence and deferability?
- Do the proposed changes to business risk assessment appropriately balance analytical flexibility with rating consistency and comparability?
The consultation will remain open until 23 October 2026. Comments should be submitted to criteria@nordiccreditrating.com. Respondents are encouraged to identify the relevant section or consultation question, explain the basis for their views and, where appropriate, suggest an alternative approach.
After the consultation closes, NCR will consider any feedback received before finalising the methodology.
Impact on published ratings
The revisions are not intended to change NCR's view of the fundamental risk drivers of corporate creditworthiness. As a result, NCR does not currently expect the revisions to have a major effect on existing ratings, although individual ratings may be affected.
Once the methodology is finalised, all issuer and issue ratings assigned under the methodology will be placed Under Criteria Review (UCR) while NCR completes the necessary reassessment, including the re-scoring of relevant rating components. NCR will seek to complete these reviews as soon as practicable and no later than six months after the ratings are placed on UCR, in line with its internal policies.
Contacts:
Andreas Kindahl, Chief Rating Officer, +46702053453, andreas.kindahl@nordiccreditrating.com
Sean Cotten, Lead Senior Analyst, +46735600337, sean.cotten@nordiccreditrating.com