Investor Presentaiton
Internal Scoring of Local Authorities
2
Scoring for local authorities based on a 3-step methodology:
1
2
M
4
5
6
7
16
1
2
3
The best score
Municipality of Lyon - Confluence District
The worst score
For membership
application a financial
scoring is realized based
on 3 criteria:
Solvency assessment
(55% weight)
Budget sustainability
(25% weight)
Indebtedness (20%)
A local authority which is
scored above 6 is not
allowed to join Agence
France Locale as a
shareholder
For the purpose of loan
provision, in addition a
socio-economic scoring
is performed.
9 ESG factors are also
taken into account in the
credit policy.
Finally, the scoring is
complemented by a
qualitative analysis* if:
' The financial score is > 5
The requested loan
amount is > 50 M€
The debt capacity is >
regulatory thresholds (12
years for municipalities,
groupings local
authorities and EPL, 9
years for regions, and 10
years for departments)
The local authority's
outstanding debt
amount with AFL is >
75% Required Capital
*The qualitative analysis includes
governance stability, quality of
management, off balance sheet
items and financial outlooks
CAFL
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