MME rating is S&P Global Ratings' forward-looking opinion about the creditworthiness of a mid-market company relative to other mid-market companies. It assesses a mid-market company's relative capacity and willingness to meet its financial obligations as they come due. We assign MME ratings using a specific rating methodology and a specific credit scale--to distinguish them from S&P Global Ratings general-purpose credit ratings--ranging from 'MM1' (highest) to 'MM8' and 'MMD' (default). We apply the same scale to issuers and to debt instruments. However, when applied to a debt instrument of a mid-market company, an MME rating also incorporates our expectations of recovery in the event of a default.
We use our global corporate ratings criteria as the basis for the evaluations. To take into account the specific characteristics of mid-market companies, we have customized the analytical process and part of the criteria. As is the case for our ratings, an
MME rating does not constitute a recommendation to buy, sell, or hold a particular security; nor does it comment on investment merit or the suitability of an investment for a particular investor.
The
MME is available to companies with annual group-level revenues below EUR1.5 billion and total reported group debt facilities (drawn and undrawn) below EUR500 million, or the local currency equivalents. The criteria also apply to financial sponsor-owned companies with annual group-level revenues below EUR1.5 billion but with total debt facilities (drawn and undrawn) below EUR250 million, or the local currency equivalents. Financial sponsors include private equity firms.
Deliverables
We provide MME ratings to companies on a public or private basis. For the private version, companies are permitted to make their MME rating available to a limited number of investors via a secure document exchange platform. Both in the public and private version, a full report describes our views about the main credit strengths and weaknesses of the company.
The product is intended to help investors better navigate this complex and relatively opaque market, provide intermediaries with an additional tool to help service their clients, and help companies access alternative sources of funding, through increased transparency.
