Fitch Ratings has released its 2011 Comparative Statistics Book for Emerging Markets Europe and Africa (EMEA). This report includes a list of key financial indicators as well as median statistics by rating category, which is calculated based upon an issuer’s most recent rating category. Fitch’s corporate ratings make use of both qualitative and quantitative analyses to assess the business and financial risks of fixed-income issuers and of their individual debt issues.
Fitch’s qualitative analysis explores issuers’ operating environment to account for systemic risk. The quantitative aspect of Fitch’s corporate ratings focuses on the issuer’s policies in relation to operating strategies, acquisitions and divestitures, financial leverage targets, dividend policies, and financial goals. Paramount to the analysis is the issuer’s ability to generate cash, which is reflected by the ratios that measure profitability and coverage on a cash flow basis. The sustainability of these credit protection measures is evaluated over a period of time to determine the strength of an issuer’s operations, competitive position, and funding ability.
The special report represents an ongoing effort by Fitch to provide investors with tools and key detailed company profile information to make insightful credit judgments in a region with diverse risks.