For homebuyers, a developer’s AAA credit rating is a sign of financial stability
Olas holds the highest possible credit rating, AAA(Dun & Bradstreet), which signals financial stability to homebuyers. We highlight this achievement in many contexts because we are proud of it. But what does an AAA credit rating actually mean?
Dun & Bradstreet, the company granting the rating, defines the highest AAA category as follows: “There are seven credit categories. Requirements for achieving the highest AAA rating include significantly above-average financial indicators, a positive background and payment history, and sufficient operating volume.” Dun & Bradstreet, founded in 1841, is one of the world’s leading business analytics organizations. It collects and analyzes extensive data on companies and their operations, including financial figures, company history, and credit ratings. Read more about the AAA rating on Dun & Bradstreet’s website. Dun & Bradstreetin sivuilta.
An AAA rating indicates that a company has strong payment ability and creditworthiness. This means the company can repay its loans and debts as agreed and on time. In the credit rating system, AAA is reserved for companies with stable financial prospects and a solid payment history. It signals to investors and lenders that investing in or lending to such a company is safe and low-risk. For this reason, AAA is a highly respected status among financial decision-makers.
What is required to reach the AAA credit rating?
The most influential factor is the company’s financial statements. The typical reasons for a lower rating are weak financial ratios.
Thresholds for achieving AAA status:
- Revenue: min. 170 000 €
- Equity ratio: ≥ 50 %
- Relative indebredness: ≤ 80 %
- Return on invested capital: ≥ 15 % (calculated by Dun & Bradstreet based on the closing period figure)
- Quick-ratio: ≥ 0,5
The company’s key figures must at the same time be better than or at least equal to the thresholds. An AAA credit rating therefore requires all thresholds to be exceeded simultaneously.
The AAA rating is not only about meeting numerical thresholds. Other factors may lower the rating, such as the company’s background, key personnel, or parent company. Payment records also play a role, including defaults, collection actions, and payment behavior data collected from Dun & Bradstreet’s partners. For example, there must have been no collection actions against the company within the past six months. Read more about the AAA rating thresholds on Dun & Bradstreet’s website. Dun & Bradstreetin sivuilta.
Homebuyers should assess a developer’s financial standing
Credit ratings are updated annually using the latest financial statements. A company’s situation can change during the fiscal year without yet being reflected in the rating. At Olas, we strive to complete our financial statements as quickly as possible (every February) so customers can access up-to-date information. We are happy to share our latest financial statements as well as interim reports to support decision-making. This way, buyers can trust that we will complete our projects without issues and take responsibility after construction.
Our AAA credit rating confirms that our financial position is strong and stable. We are proud of this achievement: while many competitors have struggled in challenging market conditions, Olas has experienced the opposite. Since our founding in 2017, we have grown steadily into one of the leading single-family home builders in the Helsinki metropolitan area. Financially, we are among the strongest companies in the industry. In 2023, we exceeded our growth targets, increasing revenue by 25% to 17.7 million € The AAA credit rating is proof that you can buy a home from us with complete peace of mind.
Read more about our strong growth here or in Kauppalehti.
