Investing.com -- The European Investment Bank (EIB) is examining how external credit ratings can be used to improve financing access for innovative European startups and scaleups. The initiative will support companies backed by EIB venture debt instruments by facilitating independent credit ratings from agencies registered with the European Securities and Markets Authority (ESMA). The advisory service aims to assist companies considered key to Europe’s competitiveness and strategic autonomy.
The first agreement for a pilot program was signed with Spanish credit rating agency INBONIS, which specializes in ratings for small and medium-sized enterprises. The pilot will run for 18 months under the InvestEU Advisory Hub mandate, the European Union’s investment advisory and support platform managed by the European Commission and the EIB.
Under the pilot program, INBONIS Rating will conduct independent credit assessments and issue private credit ratings for companies selected by the EIB across various sectors, including beneficiaries of the CleanTechEU guarantee mechanism. The program will examine whether credit ratings from an External Credit Assessment Institution (ECAI) registered with ESMA and recognized by the European Banking Authority (EBA) can help intermediary banks in their risk assessment processes, improve comparability between companies, and accelerate access to working capital lines and bank financing for fast-growing innovative companies.
The initiative addresses a structural challenge facing many European startups and scaleups. Despite reaching significant technological and commercial maturity, many companies struggle to access traditional bank financing, particularly when they lack an established credit history or external credit assessment. The pilot program seeks to study how credit ratings might help bridge the gap between innovation financing and traditional bank financing.
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