Al Etihad Credit Bureau starts issuing commercial credit scores to UAE businesses

The three digit scores — ranging from 300 to 900 — determine the creditworthiness and risks of default of a company. (Reuters)
Updated 02 August 2017
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Al Etihad Credit Bureau starts issuing commercial credit scores to UAE businesses

DUBAI: Al Etihad Credit Bureau on Wednesday said it has began issuing commercial credit scores to businesses in the UAE.
The three digit scores — ranging from 300 to 900 — determine the creditworthiness and risks of default of a company. It is calculated using information from various sources, like banks, finance companies and telecom companies. The higher the score, the lower the risk of default.
“The launch of the Commercial Credit Score will help banks and other commercial lenders to assess the risk from the time of application throughout the entire lending relationship,” Marwan Ahmad Lutfi, chief executive of Al Etihad Credit Bureau said in a statement.
Companies can obtain their credit scores by visiting the bureau’s customer service centers in Abu Dhabi and Dubai, and presenting documents such as the original Emirates ID of company’s owner or the company’s authorized signatory, original trade license, the original articles of association of the company and a valid e-mail address.
A standard commercial report — with no score — costs Dh180, while a report with a score costs Dh220. A credit report for an individual or establishment without a score costs Dh100 while it costs an additional Dh50 to get one with a score. A credit score only, with no report, costs Dh60.
According to international best practices, a good commercial credit score assists small and medium enterprises in accessing the credit market because the analytic and predictive score indicates the likelihood of future default and the effectiveness of current management, the bureau said.


Thomas Cook warns on profit as hot summer hits demand

Updated 2 min 44 sec ago
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Thomas Cook warns on profit as hot summer hits demand

  • Thomas Cook makes all its profit in the summer when its customers in northern Europe go on holiday
  • But ‘unprecedented months of hot weather’ reduced demand for late bookings
LONDON: British travel company Thomas Cook cut its 2018 profit outlook by about 13 percent, blaming a heatwave in northern Europe for more discounting and tougher competition in the most profitable later part of the summer holiday season.
Thomas Cook makes all its profit in the summer when its customers in northern Europe, including Britain, Germany and Scandinavia go on holiday, mainly to warmer destinations in southern Europe such as Spain, Turkey and Greece.
But what the company described as “unprecedented months of hot weather” reduced demand for late bookings, adding to pressure after it had already warned in July that profit would be at the lower end of expectations.
“The slowdown in customer bookings during June and July extended into August, leading to higher than normal levels of promotional activity,” Thomas Cook said in a statement on Monday.
Thomas Cook’s bigger rival TUI Group in August stuck to its forecasts but said that the heatwave would prevent it from beating them.
For the 12 months to Sept. 30 2018, Thomas Cook guided that underlying operating profit (EBIT) would come in at around £280 million ($366 million), below a previous £323 million to £355 million range.
The company also said the hot summer was affecting demand for winter holidays, saying that it would provide more detailed guidance in November when it reports its annual results.
In a separate statement, Thomas Cook said its chief financial officer Bill Scott would leave the company on November 30, and be replaced on an interim basis by Sten Daugaard, a board member of Thomas Cook’s German business.
A search for a permanent successor would be started immediately, the company added.